Trump to Announce $54 Billion South Korean Investment in Alaska LNG Project, Sources Say

President Donald Trump is expected to announce a $54 billion investment from South Korea designated for the Alaska liquefied natural gas (LNG) export facility and other U.S. energy projects, according to two people familiar with the matter. The move aims to advance a long-stalled energy infrastructure project by tapping into a larger South Korean strategic investment fund.

Investment Details

The announcement, which the White House schedule indicates is planned for Wednesday afternoon, will draw from a $350 billion strategic investment package pledged by Seoul as part of a trade agreement reached last year, the sources said. While the primary beneficiary is expected to be the Alaska LNG project, the funds are also slated for other U.S. initiatives.

U.S. and South Korean officials have reportedly discussed several potential projects for the investment package, including nuclear power and a gas-fired power plant in Texas, in addition to the Alaska LNG facility.

Project Background and Viability

The Alaska LNG project aims to commercialize the state's vast natural gas reserves on the North Slope. The plan involves constructing a major pipeline to a liquefaction plant on Alaska's southern coast for export, primarily to Asian markets. However, the project has consistently faced hurdles related to its high costs and questions surrounding its commercial viability.

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This potential investment from South Korea could provide a critical financial lifeline. Key facts about the project include:

• Developer: Glenfarne
• Existing Agreements: Preliminary deals with Japan’s JERA and Tokyo Gas for a combined 2 million metric tons per year.
• Financing Gap: The developer stated in March it had secured commitments for 13 million tons annually but required another 3 million tons to make the deals binding and finalize project financing.

Political Context and Scrutiny

The timing of the announcement comes just ahead of November's midterm elections and holds political significance in Alaska, where Republican Senator Dan Sullivan is defending his seat. The administration has frequently promoted the project as a means to expand U.S. energy exports and bolster relationships with key allies.

In South Korea, however, the plan has drawn scrutiny. Kim Sung-won, a lawmaker who chairs the parliament’s trade committee, told Reuters that any investment requires thorough verification of its "commercial rationale and viability." He added that South Korea’s National Assembly would "closely examine" the profitability of U.S. investment projects and the benefits for Korean companies.