Seoul: South Korea's possible involvement in the Alaska liquefied natural gas (LNG) project is anticipated to be viewed positively in upcoming tariff discussions with the Donald Trump administration, according to Alaska's Governor Mike Dunleavy. The governor shared this insight during a roundtable interview with Yonhap News Agency and other media outlets while visiting Seoul to discuss the LNG project with South Korean government officials and major corporations.
According to Yonhap News Agency, Governor Dunleavy emphasized that South Korea's purchase and investment in Alaskan LNG would set a favorable tone for other negotiations, including tariff discussions. He stated, "I don't represent the United States of America diplomatically. However, I would say that anytime our friends purchase products in the U.S., purchase gas from the U.S., invest in the U.S., that is always going to be looked favorably upon."
James Kim, chairperson of the American Chamber of Commerce in Korea (AMCHAM), highlighted the significance of the project, noting its potential to reduce the trade deficit the U.S. has with Asian countries. Kim mentioned that the trade deficit with South Korea increased from approximately $20 billion under Trump 1.0 to $65 billion under Trump 2.0, underscoring the importance of the LNG project in addressing these imbalances.
Governor Dunleavy further elaborated that South Korea's need for natural gas could lead to positive outcomes in trade imbalances, tariffs, and partnerships with Korean companies. The $44 billion project, which aims to build a 1,287-kilometer pipeline from the North Slope to southern Alaska, has gained attention as a bargaining chip in tariff negotiations. The project plans to produce 20 million tons of LNG annually and start its exports primarily to Asia by 2030.
The governor's visit to Seoul included meetings with senior government officials and executives from South Korean conglomerates such as SK, POSCO, and Hanwha. The discussions centered around the project's potential benefits, including its relatively short shipping time of nine days from Alaska to South Korea due to geographical proximity and uncontested Pacific Ocean waters.
Brendan Duval, CEO of Glenfarne Group, a joint developer in the project, noted the strategic advantage of South Korean companies becoming active partners, including supplying steel for the pipeline construction and producing LNG carriers. Addressing concerns over the project's economic feasibility, Duval assured that advancements in technology and the increased demand for gas have improved the project's competitiveness.
Governor Dunleavy concluded by stating that the project stands on its own merits without the need for additional incentives for South Korea to join. The evolving global energy landscape, marked by advancements in AI, supercomputing, and a shift towards a carbon-free economy, has transformed the project's economic outlook for the better.