Vice industry minister to visit US for Alaska LNG project amid tariff talks

A satellite image shows the Arctic LNG 2 facility in the Gydan Peninsula, Russia, March 7. The photo image is not related to the article. Reuters-Yonhap

Second Vice Industry Minister Choi Nam-ho said Tuesday that he plans to visit the United States to assess the feasibility of a liquefied natural gas (LNG) project in Alaska, which has emerged as a key issue in bilateral trade talks.

During a lecture in Seoul, Choi said working-level talks between South Korea and the U.S. are under way regarding the Alaska LNG project, and that he is planning to travel to Alaska soon regarding the matter.

U.S. President Donald Trump recently highlighted the interest of South Korea and other countries in partnering with the U.S. to build a pipeline from the North Slope, a proven massive reserve of natural gas, to southern Alaska, where the gas would be liquefied for shipments, primarily to Asia.

"If the Alaska LNG project is developed and the gas is brought to the Northeast Asian market, the transportation distance would be roughly halved, which could make it economically viable for Korea, even if the production cost is slightly higher," Choi said.

"Automobiles are one of our key export items, and the Alaska project could be considered part of our negotiation package regarding the new U.S. tariffs," he added.

Participation in the project could be an area "where concessions might be made," if South Korea would be able to secure substantial benefits in auto tariff negotiations, according to the official.

But the Seoul government has yet to reach a conclusion on the matter and is still reviewing it, Choi said, adding that talks with the U.S. will continue, as Washington has announced a 90-day pause in the implementation of the "reciprocal" tariffs that include a 25 percent tariff for South Korea.

Acting President Han Duck-soo said Monday that Trump "apparently" instructed his administration to conduct immediate tariff negotiations with South Korea, Japan and India, and he expects the two sides to hold a video conference "in the next one or two days" regarding cooperation on the Alaska project.