PROJECT LONG IN LIMBO
The Alaska LNG project, if it ultimately goes forward, includes an 807-mile (1,300km) pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska’s southern coast, allowing the fuel to be shipped to Asian markets. The project is designed to transport about 3.9 billion cubic feet (110 million cubic metres) of natural gas per day and produce up to 20 million metric tons of LNG annually, according to the White House.
Trump has repeatedly promoted the project as a way to expand US energy exports and strengthen ties with allies including South Korea and Japan.
But the project has faced years of uncertainty over its cost, financing and commercial viability. South Korea’s investment could provide a potential source of financing, although Seoul has previously said projects under its US investment package must meet commercial viability standards.
South Korean opposition lawmakers have raised concerns about the commercial viability and fiscal risks of investments in US projects.
South Korea’s industry ministry said last week that a more than 6-gigawatt gas-fired power plant in Encinal, Texas, was the first project selected under the US$200 billion strategic investment program.
COMMITMENTS NEED TO BE BINDING
Japan’s two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built.
Glenfarne, the project’s developer, said in March it had lined up commitments for 13 million tons a year, but needed another 3 million tons to secure financing and make all commitments binding. It did not immediately respond to a request for comment about Wednesday’s plan.
The eight nuclear plants would form part of Trump’s effort to expand US nuclear generation as electricity demand rises, including from data centres and manufacturing. South Korea has been discussing a potential investment in US nuclear projects as part of the broader package.
The Texas gas-fired power project is expected to supply electricity to energy-intensive facilities, including semiconductor plants and data centres. South Korean officials have said the project was selected after reviews of its commercial viability.