Trump's $54 Billion Bet on Alaska LNG Raises Doubts Over Economics

US President Donald Trump's push to secure $54 billion in South Korean investment for the Alaska LNG project has raised questions about its economic viability. The project, which would cost between $44.5 and $54.5 billion, is estimated to be more than twice as expensive as comparable projects on the US Gulf Coast.

Glenfarne Group, the lead developer of the project, estimates that Alaska LNG will require an 800-mile pipeline from the North Slope to Nikiski at a cost of between $13.2 and $16.9 billion. Additionally, a large treatment plant would need to be built on the North Slope before gas can be transported south for export.

Industry analysts have questioned whether Asian buyers are willing to pay a premium for Alaska LNG in exchange for security of supply. Jason Feer, head of business intelligence at Poten & Partners, said that 'so far, we have not seen evidence of that.'