US urges LNG import ahead of high-level tariff talks with Korea

Alaska Gov. Mike Dunleavy speaks in a pre-recorded video address during the American Chamber of Commerce in Korea (AMCHAM) Evolving Energy Forum at Grand Hyatt Seoul, Friday. Courtesy of AMCHAM

Washington renewed calls Friday for Korea to increase imports of liquefied natural gas (LNG) from Alaska, ahead of formal negotiations next week aimed at reducing tariffs under U.S. President Donald Trump's revised trade strategy.

However, Seoul remained cautious about gas imports from the northwestern U.S. state and a related pipeline construction project, amid persistent concerns over their feasibility.

Tommy Joyce, acting assistant secretary for the U.S. Department of Energy's Office of International Affairs, encouraged Korea and other allies to support the U.S. government's plan to expand LNG exports, which it claims will help bolster global energy security.

"The Trump administration is committed to unlocking the 20 million tons per year of gas exports from Alaska and views this as a fantastic opportunity to strengthen Asia's energy security," Joyce said in a pre-recorded video message during the Evolving Energy Forum hosted by the American Chamber of Commerce in Korea (AMCHAM).

He described Korea as a key player in helping unleash American energy and advancing Trump's vision of building supply chains independent of China.

Tommy Joyce, acting assistant secretary for the U.S. Department of Energy's Office of International Affairs, speaks in a pre-recorded video address during the American Chamber of Commerce in Korea (AMCHAM) Evolving Energy Forum at Grand Hyatt Seoul, Friday. Courtesy of AMCHAM

Alaska Gov. Mike Dunleavy also sent a video address promoting his state's natural gas. He visited Korea in March to urge government officials to import LNG and invest in the construction of a nearly 1,300-kilometer pipeline.

"We're not just exporting gas. We're strengthening our ties," he said.

Dunleavy added that the Alaska LNG project would deepen the already strong Korea-U.S. relationship, which he said is built on decades of mutual trust, shared values and economic cooperation.

AMCHAM Chairman James Kim, who accompanied Dunleavy on his two-day visit to Seoul, said he hoped the governor left with a "very positive energy of Korea." The chamber has advocated for Alaska LNG imports as a way to reduce the U.S. trade deficit with Korea.

"We also have the Korean presidential election just around the corner, so the U.S.-Korea relationship is really at a critical juncture," Kim said. "We will be meeting with most of the presidential hopefuls in the coming weeks, and we hope to know better about their policy."

Trade, Industry and Energy Minister Ahn Duk-geun, center, attends the American Chamber of Commerce in Korea (AMCHAM) Evolving Energy Forum at Grand Hyatt Seoul, Friday. On his left is AMCHAM Chairman James Kim. Yonhap

Trade, Industry and Energy Minister Ahn Duk-geun, however, did not mention the Alaskan LNG project in his congratulatory remarks at the forum. He is scheduled to visit Washington on Tuesday for trade talks, accompanied by Deputy Prime Minister and Finance Minister Choi Sang-mok.

While outlining Korea's energy policies aimed at addressing the surge in electricity demand in the era of artificial intelligence, Ahn just said the country's heavy reliance on energy imports has led it to strengthen cooperation with key partners.

Jo Eek-no, director general of the ministry's energy policy bureau, also refrained from disclosing the government's position on the Alaska LNG project in his keynote speech, although he acknowledged U.S. energy policies as helpful for Korea's energy security.

During a panel discussion that followed, Kim Kwon-jong, head of POSCO International's energy policy department, urged the government and Korea Gas Corp. to share more details about the Alaska project, showing his company's interest in diversifying natural gas sourcing markets.

Due to uncertainty over the profitability of the LNG imports and the feasibility of the pipeline project, experts have advised the government not to rush into a deal with the U.S. in exchange for concessions in trade negotiations.

The Democratic Party of Korea has raised concerns that the U.S. is attempting to maximize its interests amid Korea's political transition.

In response, the government has reiterated that no decision has been made regarding participation in the Alaska LNG project.