Trump threatens to double South Korea’s bill over Alaska LNG project

Saturday 03 - 12:30

By: Azzat Manal

Trump threatens to double South Korea’s bill over Alaska LNG project

US President Donald Trump has threatened to increase the amount South Korea would be asked to contribute to the Alaska liquefied natural gas project if Seoul does not agree to the terms presented by Washington.

Speaking to reporters on October 2, Trump said that if South Korea did not sign the agreement soon, he would seek a larger financial commitment, adding that the amount could be doubled.

The warning came after Trump announced plans for South Korea to invest $200 billion in US projects, including a proposed $54 billion Alaska LNG pipeline. However, South Korean officials have indicated that the Alaska project has not yet been finalized and remains subject to further negotiations, including commercial and legal assessments.

South Korea’s industry ministry has previously said that the two sides had not reached a final agreement on specific figures or implementation details for the Alaska project. Trump, meanwhile, has defended his announcement, arguing that South Korean representatives were present when the investment plans were discussed.

The Alaska LNG project is designed to transport natural gas from Alaska’s North Slope through an approximately 800-mile pipeline to a liquefaction and export facility in southern Alaska. The project is intended to supply Asian markets, including South Korea, Japan and Taiwan.

The project faces significant financial and commercial challenges. Reuters reported that its estimated cost of between $44.5 billion and $54.5 billion would make it substantially more expensive per unit of capacity than comparable LNG projects on the US Gulf Coast. Supporters argue that Alaska’s proximity to Asian markets could provide strategic advantages, while critics have questioned whether buyers would accept the higher costs.

The dispute is unfolding within a broader US-South Korean investment framework. The two countries previously agreed on a package involving $350 billion in South Korean investment commitments linked to a US trade agreement, with projects in areas including shipbuilding, energy and strategic industries.

Trump’s latest comments add pressure to negotiations over Alaska LNG at a time when his administration is promoting the project as part of a broader effort to expand US energy infrastructure and exports. For Seoul, however, the project remains dependent on further discussions over its economic viability and final terms.