Trump announces Alaska LNG project as part of Korea's investment plans
Summary
U.S. President Donald Trump unveiled South Korea’s U.S. investment projects in Washington on Wednesday, including a Texas gas-fired power plant, eight large-scale nuclear power plants and an Alaska LNG project. He said the package was part of last year’s bilateral trade agreement and called it a major step toward strengthening energy supply chains and the South Korea-U.S. partnership. The announcement appeared to differ from Seoul’s position that only the Texas project has been finalized so far.
Key Facts
- The trade agreement committed South Korea to investing US$350 billion in the United States, including $150 billion for shipbuilding and the rest for strategic investments.
- Trump said South Korea would invest up to $200 billion to build a 6-gigawatt power generation facility in Texas.
- The Alaska LNG project includes a 1,298-kilometer pipeline from the North Slope to southern Alaska to transport natural gas for shipment to Asia.
- Lutnick said over $50 billion would go to the Alaska LNG project, and $120 billion would fund eight nuclear power plants, including a $20 billion contingency fund.
- The U.S. and South Korea had been negotiating the project selection because Seoul wanted the investments to meet commercial viability standards.
US President Donald Trump makes an announcement with Secretary of Commerce Howard Lutnick in the Oval Office of the White House, Washington, Sept. 30. UPI-Yonhap
U.S. President Donald Trump on Wednesday unveiled South Korea's U.S. investment projects under last year's bilateral trade agreement: the construction of a gas-fired power plant in Texas, eight large-scale nuclear power plants and a liquefied natural gas (LNG) project in Alaska.
The announcement followed protracted negotiations over major energy infrastructure projects under the agreement that committed South Korea to investing US$350 billion in the United States -- $150 billion for the shipbuilding sector and the remainder for strategic investments -- in return for lower U.S. tariffs on Korean goods.
Trump's explanation of the first investment package under the agreement suggested apparent differences with Seoul's position that only the Texas project has been finalized, while the Alaska LNG and nuclear projects remain subject to further discussions with the Trump administration.
Trump highlighted the investment projects as he has underscored his economic achievements ahead of the November midterm elections amid public concerns over the monthslong war with Iran that has resulted in high energy prices and deepened economic uncertainties.
"(South Korea) will invest up to $200 billion ... to build a 6-gigawatt power generation facility in Texas. That's a major plant. That's about as big as you will see, (and) eight new large-scale nuclear power plants," Trump said at the White House.
"And at long last, Alaska liquefied natural gas pipeline. That's a big one," he added.
Trump touted the set of three projects as "the colossal package," saying it marked a "major step towards securing our critical energy supply chain, ensuring American energy dominance and making our partnership with South Korea and the entire Pacific region stronger than ever before."
"The natural gas power plant that will be constructed in Texas will be among the largest ever built anywhere in the world. The eight new nuclear reactors built across the country will solidify our position as the world's leading producer of nuclear power," the president said.
He added, "By building the Alaska LNG pipeline, we will deliver nearly 4 billion cubic feet of LNG per day, and that puts us at a level that is not comparable with anyone else."
The LNG project involves the construction of a 1,298-kilometer-long pipeline from the North Slope, which has massive proven natural gas reserves, to southern Alaska to transport natural gas that will be cooled to liquid form for shipments to Asia.
Trump made the announcement alongside Commerce Secretary Howard Lutnick, Interior Secretary Doug Burgum, Energy Secretary Chris Wright and Sen. Dan Sullivan (R-AK), calling the investment plans "one of the largest energy infrastructure investments in American history."
Secretary of Commerce Howard Lutnick shakes hands with President Donald during an announcement in the Oval Office of the White House, Washington, Sept. 30. UPI-Yonhap
Lutnick said that over $50 billion will be invested in the Alaska LNG project, while $120 billion, including a $20 billion "contingency" fund, will be funneled into the project to build eight "gigantic" nuclear power plants across the United States, including in Ohio, Tennessee, South Carolina and Kentucky.
The secretary cast the Texas gas-fired power plant as a project worth over $22 billion.
South Korean President Lee Jae Myung and Trump reached the trade agreement during their summit in South Korea last October. In return for Seoul's investment commitment, Washington agreed to lower its now-invalidated "reciprocal" tariffs on South Korean goods to 15 percent from 25 percent.
South Korea and the U.S. had engaged in difficult negotiations over the selection of investment projects amid Seoul's efforts to ensure "commercial viability" in those projects.
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