Trump Pressures South Korea on Alaska LNG Investment with Cost Warning

U.S. President Donald Trump has pushed South Korea to invest in the Alaska liquefied natural gas (LNG) project, warning that delays could lead to higher costs. Trump stated that he did not prematurely announce South Korea’s participation and suggested that if the country hesitates, it may face increased charges. He said, "Tell them if they don’t sign shortly, I’m going to double it up." However, the South Korean government clarified that discussions are still ongoing and no investment decisions have been made.

The Alaska LNG project involves a 1,300-kilometer pipeline to transport gas from the northern North Slope to Nikiski for export. While the project could diversify South Korea’s energy sources and reduce trade surpluses, experts highlight significant risks. Construction challenges, including mountainous terrain and permafrost, could inflate costs and delay timelines. Professor Shin Hyun-don of Inha University noted that even American companies abandoned the project due to commercial viability concerns.

South Korea’s cautious approach is partly due to domestic laws requiring investments to be commercially reasonable. The country is negotiating key contractual terms to mitigate potential losses. Recently, South Korea remitted $2.4 billion for a Texas power plant, fulfilling an earlier U.S. investment commitment. Trump has also urged further investment in an $8.4 billion enhanced oil recovery project. The outcome of ongoing trade investigations and the project’s viability review will shape future Korea-U.S. trade relations.