Alaska LNG Project Gains Strategic Importance in South Korea-US Talks
South Korea and the United States are in discussions over the development of a liquefied natural gas (LNG) project in Alaska. During a parliamentary inspection on October 6, South Korea’s Minister of Trade, Industry and Energy Kim Jung-kwan highlighted the strategic value of the Alaska LNG project, particularly in light of the Middle East war. However, he stressed that securing commercial viability remains a prerequisite for any investment.
The Alaska project involves constructing a 1,300-kilometer gas pipeline to connect the northern and southern coasts of the state, enabling the export of LNG. While private U.S. companies initially pursued this project in the 2010s, they withdrew due to low profitability. U.S. President Donald Trump has shown strong interest in reviving the project, though South Korea maintains that the investment is still under initial review.
Minister Kim noted that the project could significantly reduce LNG transportation time from Alaska to South Korea to about 11 days, compared to the current 30-day journey via the Cape of Good Hope. He also mentioned that the project is transitioning from a private-sector-led initiative to a federal government-led effort. However, he cautioned that the high investment costs could lead to expensive long-term LNG contracts for South Korea.
Representative Choi Soo-jin of the People Power Party criticized the lack of transparency in the investment process, emphasizing the need for a thorough audit by the Board of Audit and Inspection.