Finance30 September, 20263 min read
Trump Unveils $200 Billion South Korea Investment Plans, Including $54 Billion Alaska LNG Project
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South Korea to invest about $200 billion in U.S. projects, per White House. About $54 billion earmarked for Alaska LNG project, as part of package.
$200B for U.S. projects
President Donald Trump is expected to announce on Wednesday plans for South Korea to invest $200 billion in US projects, including $54 billion to build the long-planned Alaska liquefied natural gas project, a White House official said. The announcement will detail the first major projects under a broader $350 billion strategic investment package South Korea made as part of a trade agreement with Washington last year. The White House spokeswoman Taylor Rogers said, "Today, President Trump will announce major energy infrastructure investments that deliver on his day one promises to unleash American energy, unlock Alaska's extraordinary resource potential, and accelerate America's nuclear energy renaissance," as the Alaska LNG project is positioned as a centerpiece.
The Alaska LNG project would include an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska's southern coast, designed to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually. The $350 billion package includes $150 billion for shipbuilding and $200 billion for strategic investments, with the announcement framed as part of a series of economic and investment deals Trump is highlighting ahead of November's midterm elections.
Pipeline, nuclear, Texas
The White House official expected the investments to include the Alaska LNG pipeline project, eight large-scale nuclear power plants and a 6-gigawatt power generation facility in Texas. South Korea's investment could provide a potential source of financing, although Seoul has previously said projects under its US investment package must meet commercial viability standards. South Korean lawmaker Kim Sung-won, who chairs parliament's trade committee, said, "Before considering political needs or diplomatic demands, however, it was necessary to thoroughly verify the commercial rationale and viability of any investment that put a tremendous burden on the public," as opposition lawmakers raised concerns.
JERA and Tokyo Gas have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built. Glenfarne, the project's developer, lined up commitments for 13 million tons a year in March but needed another 3 million tons to secure financing and make all commitments binding.
Political timing and stakes
The announcement would be part of a series of economic and investment deals Trump is highlighting ahead of November's midterm elections, as he seeks to reinforce his economic record amid voter concerns over the Iran war and high gasoline prices. Republicans seek to retain incumbent Senator Dan Sullivan who faces Democrat Mary Peltola, tying the Alaska LNG project to the political contest. A White House press officer posted a Bloomberg story outlining the plan, and the announcement is timed to boost the reelection prospects of Alaska Republican Senator Dan Sullivan.
The Alaska LNG project has faced years of uncertainty over its cost, financing and commercial viability, and South Korea's industry ministry was considering eight large nuclear reactors and the Alaska LNG project. The Texas gas-fired power project is expected to supply electricity to energy-intensive facilities, including semiconductor plants and data centers, as the broader package is described as part of Trump's effort to expand U.S. nuclear generation.