US Announces $50B Alaska LNG Deal Without Seoul's Consent
South Korea's investment in the United States has taken an unexpected turn. On September 30, US President Donald Trump announced that South Korean investment would go toward a gas-fired power plant in Texas, eight large nuclear reactors, and an Alaska liquefied natural gas project. The $50 billion-plus Alaska LNG project is a high-risk mega-project that involves transporting natural gas through a pipeline over 1,300 kilometers to the south for export.
The US treated this investment as a done deal despite the Korean government's intention to leave it for 'further review.' The announcement was made without any agreement between the two countries or verification of commercial viability. This has raised concerns about the project's potential cost overruns and schedule delays, which could affect its competitiveness.
The White House announcement was attended by a large contingent of US figures, including Republican politicians from Alaska, but no Korean officials were present. This move is seen as a political gain for Trump ahead of the November midterm elections. Industry and Trade Minister Kim Jung-kwan has denied that the investment had been finalized, stating that Korea and the US share an understanding that the project will not proceed if it lacks commercial rationality.