Vance softens stance on Alaska LNG project amid Trump tariff threat

U.S. Vice President JD Vance has adopted a more cautious stance on the Alaska liquefied natural gas (LNG) project, contrasting with President Donald Trump's recent tariff threat against South Korea. Speaking on Monday, Vance acknowledged that Washington and Seoul still need to "work out" details of the long-delayed project, which has been discussed for over a decade. He emphasized that both South Korea and Japan are interested in the project, stating, "It’s not just the South Koreans. The Japanese would love to see this pipeline."

Trump had earlier warned that South Korea would face higher tariffs if it failed to commit to the Alaska LNG project soon. "If they don’t want to do it, that’s OK with me. I’ll just charge them more," Trump told reporters. However, South Korea has maintained that no final investment decision has been made, emphasizing that participation would depend on "commercial reasonableness" and compliance with domestic legal procedures.

The Alaska LNG project, majority-owned by Glenfarne Group, is estimated to cost between $44.5 billion and $54.5 billion. It aims to transport North Slope gas through an 807-mile pipeline to a liquefaction and export terminal on the Kenai Peninsula, with a planned capacity of about 20 million metric tons of LNG annually. Despite preliminary agreements with Asian buyers, the project faces significant financing and cost challenges.

Vance expressed optimism about the project's future, citing strong Asian demand for American natural gas. "When there’s a demand for this stuff and there really is strong demand for American natural gas, I think we’re going to be able to get it done," he said. The project has gained some commercial momentum, with Glenfarne securing preliminary long-term agreements covering about 13 million tons of LNG annually with buyers in South Korea, Japan, Taiwan, and Thailand.