Korea Reevaluates Alaska LNG Project Amid Middle East War

South Korea is reconsidering its stance on the Alaska liquefied natural gas (LNG) project following the outbreak of the Middle East war. During a parliamentary audit, Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources acknowledged that the project had previously been stalled due to low business viability. However, he noted that the conflict in the Middle East has introduced new strategic value, as LNG shipments from the region are now disrupted.

Minister Kim explained that the war has forced shipments from the Gulf to take longer routes, such as around the Cape of Good Hope instead of the Panama Canal. He emphasized that if the Alaska LNG project succeeds, it would provide Korea with a reliable alternative source of LNG, thereby enhancing its energy security.

The minister also highlighted that the U.S. government is shifting its approach, moving the project from private-sector led to federal-led. He stated that Korea would review the details before making any final decisions. The total project cost is estimated between $44 billion and $54 billion, with U.S. officials suggesting Korea's investment could exceed $50 billion. However, the Korean government has clarified that no investment has been finalized yet.