Vance Says South Korea Likely to Join $54 Billion Alaska LNG Project

U.S. Vice President JD Vance has expressed confidence that South Korea will join the $54 billion Alaska liquefied natural gas (LNG) project, calling it 'basically going to happen.' His remarks come amid pressure from President Donald Trump, who threatened to impose higher fees on South Korea if it declined to participate. Vance acknowledged that while some details still need to be resolved, the project aligns with strong U.S. natural gas demand and has broad support.

South Korea has already transferred $2.4 billion to the U.S. as part of its investment commitment under a bilateral trade agreement, signaling its interest. However, Seoul has remained cautious, emphasizing that it will only proceed if the project is economically viable. The absence of South Korean officials at Trump's announcement of the project underscores this hesitation.

The Alaska LNG project involves building a 1,298-kilometer pipeline from Alaska's North Slope to liquefaction facilities in the south, with construction costs estimated between $44.5 billion and $54.5 billion. While the project offers shorter shipping distances to Asia, its higher construction costs compared to Gulf Coast LNG projects pose a challenge. Developer Glenfarne Group aims to secure customers for 16 million tons of LNG per year to support financing.

The project holds significant political value for Trump, particularly as Alaska faces a competitive Senate seat contest in the midterm elections. Vance framed the project as crucial for Asia-Pacific energy demand, noting interest from Japan as well. South Korea's participation is part of a broader $350 billion investment framework in the U.S., but final approval depends on Seoul's assessment of commercial viability and project costs.