President Donald Trump announced Wednesday that South Korea would invest more than $50 billion for the long-planned Alaska LNG project, a large majority of the project’s overall estimated cost.
“The colossal package of investments we are announcing today is a major step toward securing our critical energy supply chain, ensuring American energy dominance and making our partnership with South Korea and the entire Pacific region stronger than ever before,” Trump said.
The investment comes as part of a trade deal inked between Seoul and Washington last year cutting U.S. tariffs on Korean exports to 15%, Trump said.
“They paid to get them reduced, and part of that money is going into this project,” Trump said. “Otherwise, this project is so big, probably, I don't know, maybe the money wouldn't be available.”
The liquefied natural gas project was one of three Korean investments Trump announced Wednesday, which also included $120 billion for eight nuclear power plants across the country and $22 billion toward a natural gas-fired power plant in Texas.
Details were scarce during the Oval Office briefing, which featured state and federal officials and business leaders involved in the three ventures.
Korean officials were not present at the announcement. The secretary-general of South Korea’s ruling Democratic Party, Han Jeoung-ae, said on social media after Trump’s announcement that “the investment in the Alaska LNG project has not been finalized.
“The Alaska LNG project will be decided on the basis of sufficient review in accordance with our domestic legal procedures in accordance with the principle of commercial rationality,” she said in a post on Facebook. “This statement by President Trump is considered to emphasize the US position on the Alaska LNG project.”
On Sept. 22, South Korea’s minister of trade, industry and resources raised doubts over the commercial viability of the Alaska LNG project, saying only the Texas investment had been finalized, according to Korean media reports. Investments under the trade deal must be commercially viable, undergo legal and feasibility reviews and be reported to the country’s National Assembly, the Seoul-based Chosun Daily reported.
A pipeline to transport North Slope gas roughly 800 miles south for export has been a priority for state officials for decades, though questions over its commercial viability and enormous cost have long stalled progress. The lead developer, Glenfarne Alaska LNG, estimates the cost at up to $55 billion.
Commerce Secretary Howard Lutnick said the investment amounted to “just over $50 billion,” and a document provided by the White House ahead of the briefing put the total Alaska investment at $54 billion.
“These projects are being financed, fully paid for, by the Korean government for the benefit of the United States of America,” Lutnick said.
Glenfarne has secured preliminary, nonbinding agreements to provide 13 million metric tons of LNG annually to customers across Asia, three million tons short of the figure it has said it needs to move forward with financing the project. A Glenfarne spokesperson did not immediately return calls and texts seeking comment.
Asked at the White House briefing when the project would be completed, Glenfarne Group CEO Brendan Duval said work would begin soon and that gas would start flowing to Alaskans in three years.
“The pipeline is going to take three years, and we can start immediately as soon as this financing funds,” Duval said. “So (in) three years, we’ll have cheap gas for Alaska, which will be the lowest price in probably 20 years.”
Exports would begin two years later, Duval said.
It’s difficult to envision the project coming online that soon, given the massive amount of preparation necessary to build an Arctic gas pipeline with limited, seasonal windows to barge in materials and construct the project, said Larry Persily, who worked in the Obama administration to advance the pipeline project.
“It sounds like a political stunt from the president to attract attention, to get headlines,” Persily said.
Until Wednesday, Glenfarne insisted the project could not move forward without property tax relief it sought from the state Legislature, which repeatedly balked at the prospect during special sessions called by Republican Gov. Mike Dunleavy.
Wednesday’s announcement comes a little over a month before the U.S. midterm elections, which includes a tight and closely watched race between Republican incumbent U.S. Sen. Dan Sullivan and Democratic former Congresswoman Mary Peltola that could determine control of the chamber.
During the Oval Office announcement, Trump repeatedly credited Sullivan for the investment and referenced the senator’s reelection campaign.
“This is a great senator who is totally responsible for this pipeline,” Trump said.
Sullivan, standing directly behind Trump, hailed the investment.
“This is the most important project in our state by far,” Sullivan said. “This is the project that is going to keep our kids and grandkids in Alaska with a great bright future.”
Peltola also applauded the investment and said she had worked to advance the project during her time in Congress and as a state legislator.
“Today’s announcement is great news for Alaska, and I appreciate President Trump's work to unleash Alaska energy,” Peltola said in a statement. “I look forward to continuing this bipartisan work with the President as Alaska’s next United States Senator.”
It’s the latest in a series of job-creation announcements from Trump aimed at boosting Republicans’ midterm hopes. On Tuesday, he announced plans for a steel mill in Iowa, home to a surprisingly competitive Senate race, that he said would inject billions into the state’s economy.
This story has been updated with additional developments.
