Korea's Investment in Alaska LNG Project Hinges on Commercial Viability

The US and South Korea have reached an agreement on investing in the Alaska LNG project, but it's not as straightforward as President Trump made it seem. According to Industry Minister Kim Jung-kwan, Seoul had agreed to invest $54 billion only if the project proves economically viable.

Kim said that the Korean government was disappointed by the Trump administration's announcement, which seemed to imply a more binding commitment than what was actually agreed upon. He explained that the project would proceed subject to commercial viability requirements under the investment deal between the two nations and South Korean domestic legal procedures.

The Alaska LNG venture has been struggling for decades to secure long-term contracts and investments, despite signing non-binding sales agreements with countries including Japan and Taiwan. If South Korea does participate in the project, the US would offer it liquefied natural gas at favorable prices, Kim said.