Trump set to tout Korean investment in Alaska LNG and other projects, sources say
XLE•Trump could announce as soon as Wednesday that his administration intends to tap South Korea’s pledged investment package for about $54 billion toward an Alaska LNG facility and other U.S. projects, two people familiar with the discussions said.
1. Potential investment announcement
Trump could announce that his administration intends to use South Korea’s pledged strategic investment package for about $54 billion toward an Alaska liquefied natural gas facility and several other U.S. projects, two people familiar with the discussions said. The two governments have discussed Alaska LNG, nuclear power and a gas-fired power project in Texas, among other potential investments, as they identify projects for the $350 billion package Seoul pledged under a trade deal last year.
2. Alaska LNG plans
The proposed project would pipe natural gas from Alaska’s North Slope to a liquefaction plant on the state’s southern coast for export to Asian markets. Japan’s JERA and Tokyo Gas have signed preliminary deals to buy a combined 2 million metric tons a year if the project is built. Developer Glenfarne said in March it had commitments for 13 million tons a year, and needed agreements for another 3 million tons and to make all commitments binding to line up financing.
3. Financing uncertainty
The project has faced years of uncertainty over its cost, financing and commercial viability, including in analysis by the South Korean and Japanese governments. Trump has promoted it as a way to expand U.S. energy exports and strengthen ties with allies including South Korea and Japan.
