Seoul has rejected US claims that South Korea had committed to investing in the proposed 20mn t/yr Alaska LNG project.
President Lee Jae-Myung said the government had only agreed to begin "working on" Alaska LNG, rather than committing to invest, according to a social media post on 1 October. Further involvement would be conditional on the project's commercial viability being confirmed and participation complying with South Korean legal procedures, he added.
A White House announcement specifying the prospective size of South Korea's investment — presenting its participation as effectively confirmed — went "beyond what the countries had agreed", industry, economy and resources minister Kim Jeong-Kwan said during a briefing today. The minister raised a strong objection with US commerce secretary Howard Lutnick, and said Lutnick responded that he understood South Korea's concerns and would work to ensure the project could proceed properly.
US president Donald Trump claimed on 30 September that South Korea will invest over $50bn in Alaska LNG as part of a $350bn trade deal signed a year ago.
Kim stressed no decision had been made on whether Seoul will invest in the project, or on the potential size of investment. In the wake of last year's trade deal, South Korea's government said it considered Alaska LNG a "high-risk" venture and that it was unlikely to participate.
Kim said today that Seoul will reassess the project's economics using additional information and an on-site review. This will also consider whether direct US government involvement might ease permitting and labour supply constraints, he said.
