Trump Pressures South Korea on $50 Billion Alaska LNG Deal
US President Donald Trump has pushed South Korea to commit to the Alaska LNG project, touting it as part of a $200 billion investment package. However, Seoul is taking a cautious approach due to concerns over the project's economic viability.
The Alaska LNG project involves transporting liquefied natural gas across an 800-mile pipeline from Prudhoe Bay on Alaska's North Slope to an LNG facility in the south. According to Kit Ling Wong, head of business intelligence for Asia Pacific at Poten&Partner, 'The economics of Alaska LNG is expensive given the long pipeline versus other LNG projects.'
Shipping LNG from Niskiski to South Korea would take seven to nine days compared to around 20-30 days from the US Gulf Coast. However, South Korean buyers are questioning whether the shorter route can provide a competitive LNG price compared to alternatives such as LNG Canada or the US Gulf Coast.