The South Korean government plans to visit Alaska soon to evaluate the feasibility of a U.S. liquefied natural gas (LNG) project, a key topic in ongoing trade talks between the two countries.
Choi Nam-ho, South Korea’s second vice minister of trade, industry, and energy, said on April 15 that the Alaska LNG project, initially discussed in the late 1990s but delayed since then, is now actively under negotiation. “We are coordinating a trip to Alaska as part of ongoing talks between the U.S. and South Korea,” Choi said at a forum in Seoul.
While acknowledging that Alaska LNG’s production costs may be higher, Choi noted that the reduced shipping distance to Northeast Asia could make it viable for South Korea. “If developed, transportation distances would be cut by half, making the project significant, even with slightly higher production costs,” he explained. However, he cautioned that initial costs for liquefaction terminals and pipelines would be high, with government support playing a key role in the final price.
Choi also suggested the project could be included in a broader trade package with the U.S., possibly linked to tariff reductions on automobiles, a major export for both South Korea and Japan. “If we secure auto tariff benefits, we may be willing to make concessions on the LNG project,” he added.
However, Choi emphasized that a final decision has not been made. “We are still reviewing the issue internally, and negotiations are ongoing,” he said. “The 90-day tariff suspension gives us more time to continue discussions.”
