[Financial News] As the government begins reviewing the commercial viability of the Alaska liquefied natural gas (LNG) development project as part of its investment in the United States, it has been confirmed that the National Pension Service (NPS) is indirectly investing in a U.S. LNG project through an externally managed fund. The project is Delfin LNG, being developed offshore Louisiana. With this case of NPS investment in U.S. LNG now confirmed, the possibility of using NPS as a source of funding for investment in the United States is also being considered. NPS says that, for now, it has received no separate investment proposal or request concerning the Alaska LNG project. According to a U.S. Department of Energy (DOE) report and materials NPS submitted to the National Assembly on the 18th, NPS said in response to a question about its investment in Delfin LNG: “A fund managed by our external investment manager, GIP (Global Infrastructure Partners), is investing in the project, and NPS has committed investment funds to that GIP fund.” Under this arrangement, NPS commits to invest a certain amount in a fund, and the manager decides where to invest the money. NPS explained: “Investment decisions for externally managed funds are entirely at the discretion of the external manager, GIP,” adding, “NPS is not involved in investment decision-making.” GIP, whose fund NPS has committed to, is an infrastructure investment firm affiliated with BlackRock, the world’s largest asset manager. According to NPS, several institutional investors, including global pension funds, participate in the fund. NPS said GIP manages their funds to ensure investment stability and profitability. This can be interpreted as indicating that returns on the Delfin LNG project are assured. NPS’s participation structure is also set out in a document Delfin submitted to the U.S. Department of Energy (DOE) last July. Through a co-investment vehicle managed by GIP, NPS and other investors indirectly participate in the joint venture for the Delfin LNG Train 1 project. An attached ownership chart lists NPS’s indirect stake as 1.38% of the joint venture’s “Class B” equity. Since Class B accounts for 80% of the total equity, that amounts to approximately 1.10% of the joint venture as a whole. NPS said the figure reflects the allocation of fund investors’ indirect stakes, and that investment decisions and management authority rest with GIP. Delfin LNG is a project to install large, ship-shaped liquefaction facilities offshore Louisiana, convert natural gas into LNG, and export it. The entity for which NPS’s indirect stake is specified is the project joint venture that owns the first of these facilities. However, NPS’s specific investment amount and return terms have not been disclosed. The National Assembly requested information including the investment amount, target rate of return, investment period, and method of recovering the investment, but NPS replied, “It is difficult to disclose this information under the confidentiality clause in the investment commitment agreement.” Regarding additional contributions or guarantees, it added, “Our only payment obligation is within the amount committed to the fund.” Although the investment is indirect, the confirmed case of NPS investment in a U.S. LNG project is expected to draw attention to whether the pension fund will participate in the Alaska LNG project. Last year, the government and political circles were embroiled in debate over whether to use NPS as a funding source as they pursued $350 billion in investment in the United States. Meanwhile, NPS stated its position on the Alaska LNG project. In response to a National Assembly inquiry asking whether it had reviewed in advance the possibility of overlapping investment with the Alaska project, NPS said, “We have received no separate proposal or request.” [email protected] Kim Hyeong-gu Reporter