"US Pushes for Alaska LNG Summit in June...Pressures South Korea for Official Investment Declaration"

NYT Reports
Expectations for South Korea and Japan to Sign Letters of Intent Before the Summit

The New York Times (NYT) reported on April 24 (local time) that the White House Energy Dominance Committee is pressuring South Korea and Japan to announce their plans to purchase liquefied natural gas (LNG) from Alaska within the next few weeks.

The committee is working to ensure that trade officials from South Korea and Japan attend a high-level summit scheduled to take place in Alaska on June 2. According to multiple sources, these officials told the NYT, "They are hoping that South Korea and Japan will announce the signing of letters of intent (LOIs) for investment in Alaska LNG at this summit."

Taiwan's state-owned oil company CPC Corporation already signed an LOI regarding LNG purchase and investment with the Alaska Gasline Development Corporation (AGDC) last month.

This $44 billion project involves building a pipeline of approximately 1,300 kilometers (800 miles) from Arctic gas fields to southern Alaska, liquefying the natural gas, and then exporting it to Asian countries and other regions.

This plan was first proposed more than a decade ago, but it was considered unlikely to be realized due to the enormous investment costs and lack of business viability.

However, President Trump has been actively pushing the project forward, signing an executive order for Alaska energy development, including pipeline construction, on January 20, the first day of his second term. In his state of the union address last month, he emphasized, "My administration is building one of the world's largest natural gas pipelines in Alaska," and added, "Japan, South Korea, and other countries?we want them to be our partners."

The South Korean government is pursuing the elimination of around 25% of country-specific reciprocal tariffs and the resolution of automobile tariff issues in trade negotiations with the United States, and is discussing participation in the Alaska LNG project as a bargaining chip in these talks.

Choi Namho, the Second Vice Minister of the Ministry of Trade, Industry and Energy, stated on April 15, "The Alaska LNG project was initiated in the late 1990s to early 2000s but was delayed," and added, "Currently, working-level negotiations between South Korea and the United States are underway, and I plan to visit Alaska soon for this purpose."