Trump warns South Korea of doubled costs for Alaska LNG delay
US President Donald Trump has issued a warning to South Korea, stating that the country could face significantly higher costs if it delays its investment in the proposed Alaska liquefied natural gas (LNG) project. Speaking to reporters at the White House, Trump said, “If they don’t want to do it, that’s OK with me. I’ll just charge them more,” adding, “Tell them if they don’t sign shortly, I’m going to double it up.” The exact nature of the increased costs was not specified, but South Korean media suggested it could involve tariffs, given Trump’s previous threats.
South Korea has responded by asserting that no final investment decision has been made. Officials in Seoul emphasized that the project is still under review for commercial viability and must pass domestic legal procedures. The disagreement arises from Trump’s earlier announcement of South Korean participation in the Alaska LNG project, which includes a costly pipeline system and an export facility, with estimated costs ranging from $44.5 billion to $54.5 billion. The challenging terrain and high construction costs have raised concerns about the project’s feasibility.
In addition to the LNG project, Trump claimed that South Korea’s US investment package includes an $8.4 billion enhanced oil recovery (EOR) project. However, South Korean officials disputed this, stating that the project was not part of the bilateral agreement. The dispute adds uncertainty to the broader US-South Korea investment agreement, which includes Seoul’s commitment to substantial investments in the United States, such as the $2.4 billion transferred for a gas-fired power plant in Texas.
The outcome of the Alaska LNG project and other proposed investments will likely depend on ongoing commercial assessments and US-South Korea trade discussions. South Korea is seeking safeguards to protect investors in case the project fails to generate adequate returns, further complicating the timeline and implementation of the deal.