PROJECT LONG IN LIMBO
South Korea will begin reviewing the Alaska LNG project to assess its commercial viability and compliance with legal procedures, Seoul’s industry ministry said in a statement.
„No decision has been made on whether to invest or on the size of the investment,“ it said.
Industry Minister Kim Jung-kwan told a briefing later in the day that he had expressed regret to US Commerce Secretary Howard Lutnick over the White House announcement, as it went beyond what had been agreed.
South Korean President Lee Jae Myung also said in a post on X that the commercial viability of both the LNG project and the nuclear reactors must be confirmed before they proceed, while the foreign ministry said it hoped the investment announcement would lead to progress in discussions in security and other areas.
Any differences between Seoul and Washington over details of the deal could lead to disputes between the allies over its implementation, analysts in Seoul said.
The Alaska LNG project, if it ultimately goes forward, includes an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska’s southern coast, allowing the fuel to be shipped to Asian markets. The project is designed to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually, according to the White House.
Trump has repeatedly promoted the project as a way to expand US energy exports and strengthen ties with allies including South Korea and Japan.
But the project has faced years of uncertainty over its cost, financing and commercial viability.
South Korea’s industry ministry said last week that a more than 6-gigawatt gas-fired power plant in Encinal, Texas, was the first project selected under the US$200 billion strategic investment program.