US President Donald Trump announced on Wednesday that South Korea will invest $200 billion in American projects, including $54 billion for the long-planned liquefied natural gas project in Alaska.
Trump made the announcement in the Oval Office, where he was joined by Alaska Senator Dan Sullivan. The White House said the package amounts to the first major projects under a broader $350 billion strategic investment package South Korea agreed to as part of a trade agreement with Washington last year. That package included $150 billion for shipbuilding and $200 billion for strategic investments.
Alaska LNG at the center
Alongside the Alaska project, the investments would include eight large-scale nuclear power plants and a 6-gigawatt power generation facility in Texas. The Alaska LNG project would feature an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska's southern coast, allowing fuel to be shipped to Asian markets. According to the White House, it 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.
Midterms backdrop, viability questions
The announcement is part of a series of economic deals Trump is highlighting ahead of November's midterm elections. Senator Sullivan, who is facing a competitive challenge from Democrat Mary Peltola, has long championed the project.
South Korean officials have been cautious. Seoul's industry ministry said the projects must meet commercial viability standards, and opposition lawmaker Kim Sung-won told Reuters that lawmakers needed to "thoroughly verify the commercial rationale and viability" of investments carrying a heavy burden on the public. The ministry said a gas-fired power plant in Encinal, Texas, was the first project selected under the program.
Separately, Japan's two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built. The project's developer, Glenfarne, said in March it had lined up commitments for 13 million tons a year but needed another 3 million tons to secure financing.
Sources: Trump to unveil $200 billion investment in U.S. projects — The Hindu; Trump announces $200bn in energy investments from South Korea — Al Jazeera
Trump made the announcement in the Oval Office, where he was joined by Alaska Senator Dan Sullivan. The White House said the package amounts to the first major projects under a broader $350 billion strategic investment package South Korea agreed to as part of a trade agreement with Washington last year. That package included $150 billion for shipbuilding and $200 billion for strategic investments.
Alaska LNG at the center
Alongside the Alaska project, the investments would include eight large-scale nuclear power plants and a 6-gigawatt power generation facility in Texas. The Alaska LNG project would feature an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska's southern coast, allowing fuel to be shipped to Asian markets. According to the White House, it 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.
Midterms backdrop, viability questions
The announcement is part of a series of economic deals Trump is highlighting ahead of November's midterm elections. Senator Sullivan, who is facing a competitive challenge from Democrat Mary Peltola, has long championed the project.
South Korean officials have been cautious. Seoul's industry ministry said the projects must meet commercial viability standards, and opposition lawmaker Kim Sung-won told Reuters that lawmakers needed to "thoroughly verify the commercial rationale and viability" of investments carrying a heavy burden on the public. The ministry said a gas-fired power plant in Encinal, Texas, was the first project selected under the program.
Separately, Japan's two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built. The project's developer, Glenfarne, said in March it had lined up commitments for 13 million tons a year but needed another 3 million tons to secure financing.
Sources: Trump to unveil $200 billion investment in U.S. projects — The Hindu; Trump announces $200bn in energy investments from South Korea — Al Jazeera
