Washington: South Korea will "prudently" decide whether to join the Alaska liquefied natural gas (LNG) project following a detailed on-site field inspection, stated Seoul's industry minister. Industry Minister Ahn Duk-geun emphasized that the decision will be approached with caution due to its implications for the country's energy security.
According to Yonhap News Agency, the announcement was made during a press briefing after "2+2" trade consultations between South Korea and the United States held in Washington. The talks focused on tariff and economic issues, including industrial cooperation. Minister Ahn highlighted the necessity of conducting an on-site inspection and a detailed assessment of the project, which involves constructing a 1,287-kilometer pipeline in Alaska to produce 20 million tons of natural gas annually, predominantly for export to Asia.
The Alaska LNG project is seen as a significant opportunity for South Korea to address its trade surplus with the U.S. An official from Seoul's Ministry of Trade, Industry and Energy disclosed plans to dispatch a field inspection team to Alaska soon to evaluate the project's economic feasibility.
Discussions between South Korea and the U.S. also included the potential establishment of a consultative body for the project, involving major gas purchasers in Asia such as Japan, Taiwan, and Vietnam. The "2+2 trade consultations" featured South Korean ministers Ahn Duk-geun and Finance Minister Choi Sang-mok, alongside U.S. counterparts, U.S. Trade Representative Jamieson Greer and U.S. Treasury Secretary Scott Bessent.
Seoul proposed enhancing bilateral cooperation in energy as part of efforts to address U.S. concerns over its trade deficit with South Korea. Additionally, South Korea offered support in revitalizing the U.S. shipbuilding industry during these high-level trade consultations aimed at reducing U.S. tariffs on South Korean products.
Minister Ahn expressed optimism about the outcome of the meeting, quoting Bessent's remarks on the success of the Washington discussions. Bessent acknowledged South Korea's robust participation in the trade talks, suggesting the possibility of accelerated progress in negotiations.
During the "2+2" meeting, both nations committed to crafting a "package" deal by July 8, coinciding with the end of U.S. President Donald Trump's 90-day pause on "reciprocal" tariffs. The discussions will concentrate on four key areas: tariff- and non-tariff measures, economic security, investment cooperation, and currency policies, as reported by the Seoul government. South Korea is currently subject to 25 percent reciprocal duties.
In pursuit of this goal, Seoul's industry ministry and the office of the USTR are set to initiate working-level talks next week.