Alaska media: South Korean officials tell state lawmakers LNG investment must be commercially viable

[Financial News] U.S. President Donald Trump unilaterally announced that South Korea would invest at least $50 billion in the Alaska liquefied natural gas (LNG) development project. In response, Alaska media have reported that South Korean government officials said the investment had not been finalized.
According to Alaska Public Media on the 11th (local time), South Korean officials recently met with state lawmakers in Anchorage, Alaska, and said South Korea could invest only if Glenfarne, the developer of the Alaska LNG project, made a final investment decision (FID). An FID is the process of reviewing the key conditions required to move a project forward and giving final approval for the investment and project development.
State Sen. Bill Wielechowski, a Democrat, said, “They said they would consider whether to invest if the project is deemed commercially viable after a final investment decision is made,” adding, “It is clear that the South Korean government has not decided to invest in this project at this time.”
Regarding the situation, Victor Cha, Korea Chair at the U.S. Center for Strategic and International Studies (CSIS), said it was “one of the difficulties allies face in dealing with the Trump administration,” noting that “many details are sometimes announced before the specifics of individual agreements have been sufficiently coordinated.”
Cha nevertheless said, “The broad framework of this agreement is very clear, and South Korea is also a country that needs LNG, so the specific details will be worked out over time,” and expected South Korea to ultimately invest in the project.
Local media, however, noted that “South Korean government officials have consistently maintained that potential investments must be commercially viable,” adding that “the Alaska LNG project is unlikely to meet this standard easily.”
According to the report, the Alaska LNG project could cost twice as much as LNG projects producing gas in the Gulf of Mexico, while LNG projects planned for the Pacific coast of British Columbia, Canada, are said to be capable of producing about 40% more natural gas at a similar cost.
Jason Feer of energy consulting firm Poten & Partners said, “Even though the Iran war has disrupted energy transportation, buyers have shown no willingness to pay higher prices for LNG from Alaska,” adding, “A lot remains to be done before the project reaches its final stage, so it is difficult to say that it is imminent.”
[email protected] Hong Chae-wan Reporter