Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Korean energy firms await meetings with Alaska governor in Seoul
Alaska Gov. Mike Dunleavy speaks during the CERAWeek energy conference in Houston, Texas, March 14. Reuters-Yonhap
By Park Jae-hyuk
POSCO, SK, GS, SeAH seen as potential participants in LNG project
Major Korean energy companies are preparing for separate meetings with Alaska Gov. Mike Dunleavy, who is scheduled to visit Seoul on Monday and Tuesday to discuss Korea's potential participation in the development of gas fields in the northwestern state.
According to industry officials on Friday, companies considering meetings with Dunleavy include POSCO International, SK Innovation E&S, GS Energy and SeAH Steel.
"We are arranging a meeting with the governor, but the timing and participants have yet to be confirmed," an official from one of the Korean firms said. "The specific agenda of the meeting also remains unclear."
Given Korean energy firms' extensive experience in establishing liquefied natural gas (LNG) supply chains globally, Dunleavy is widely expected to introduce the Alaska LNG project and seek their participation and investment in the $44 billion initiative. The project aims to construct a nearly 1,300-kilometer gas pipeline from Alaska’s vast North Slope to the southern port of Nikiski.
Earlier this month, U.S. President Donald Trump, who has consistently supported a major natural gas pipeline in Alaska, publicly welcomed potential investment from Korea and Japan. The two Asian nations rank as the world's third- and second-largest LNG importers, respectively.
However, industry officials emphasized that joining such a large-scale project would require governmental agreements rather than individual corporate decisions.
Trade, Industry and Energy Minister Ahn Duk-geun, who arrived in Washington on Thursday (local time), has remained cautious about Korea's involvement, stating that the government will carefully assess the project's feasibility following a forthcoming meeting with the Alaska governor.
"We view the Alaskan project positively, but it is too early to discuss concrete details," a ministry official said.
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If Korean companies decide to participate, they could secure a new revenue source amid growing uncertainties in the global trade environment. Douglas Kim, an analyst at SmartKarma, a Singapore-based investment research firm, predicted an increasing likelihood of Korean firms receiving significant new orders from the Alaskan gas field development.
Additionally, Washington is reportedly considering exempting imported steel for the project from the 25 percent universal tariff, which could further incentivize participation.
Citing the need to bolster its energy security, Taiwan preemptively agreed to invest in the Alaska LNG project on Thursday, during Dunleavy's visit to Taipei as part of his tour of Asian countries.
However, potential participants must consider the risks, including the substantial financial commitment and the challenges posed by Alaska's extreme cold weather.
In the early 2010s, major global oil and gas companies abandoned plans to develop gas fields in Alaska due to concerns over the project's profitability. Similarly, Chinese firms withdrew their planned investments in the late 2010s as U.S.-China relations deteriorated amid trade tensions.