Trump's Alaska LNG Push Ahead of Midterms Sparks South Korean Reconsideration
US President Donald Trump is reportedly planning to announce a package of strategic investments from South Korea in various US projects, potentially including the $54 billion Alaska liquefied natural gas (LNG) project. The announcement could come as early as this Wednesday.
The South Korean government has stated that no specific announcement date has been confirmed and that they are still reviewing commercial viability under relevant laws. A Ministry of Trade official noted that 'our position on that project remains, as we explained at the last briefing, that we are reviewing commercial viability.' The final outcome would have to wait until both governments confirm it.
The Alaska LNG project involves extracting natural gas from Alaska's North Slope and transporting it by pipeline to a liquefaction facility near Anchorage. Three major US oil companies had backed the project but withdrew in 2016 amid growing concerns over costs. The project was revived ahead of the November midterms, with Trump calling on South Korea and Japan to invest in the project.
South Korea appears to have shifted toward a more serious examination of the Alaska project as a way to diversify its energy supply away from the Middle East, amid a deepening global oil and gas supply crunch driven by the ongoing conflict in the region. The country's desire to reduce its energy dependence on the Middle East is seen as a key factor behind its consideration of the project.