South Korean Enterprises Prudently Assess Investment Opportunities in Alaska to Promote LNG Project Cooperation

Alaska Governor Mike Dunleavy (Mike Dunleavy) is scheduled to visit South Korea next week to focus on promoting South Korea companies to participate in the local liquefied natural gas (LNG) development project worth about $44 billion. The purpose of this trip is to help the United States expand the scale of LNG exports through deepening energy cooperation, while helping South Korea seek trade bargaining chips.

of High-level Meeting Focuses on Energy Cooperation According to sources, Dunleavy will hold talks with South Korea Minister of Industry, Trade and Resources Andegen (Ahn Deok-geun) and other officials from March 24 to 25, and plans to discuss details of cooperation with representatives of Posco International (Posco International), SK Innovation Energy (SK Energy E & S), GS Energy and SeAH Steel (SeAH Steel). These companies all occupy an important position in the LNG industry chain. For example, Pohang International is the first South Korea private company to obtain the right to develop a large gas field in Myanmar, while SK Innovation Energy holds a 49.9 percent stake in the Woodford gas field in Oklahoma, USA, and has been deeply involved in the US LNG market for more than ten years.

Project Background and Strategic Significance of the Alaska LNG Project plans to build a 1300-kilometer gas pipeline to transport Arctic natural gas to the southern coast for liquefaction and export. The project is highly compatible with the "expand LNG exports" policy promoted during the Trump administration, which aims to improve the US trade balance through energy trade. On Thursday, the U.S. Department of the Interior announced that it will ease restrictions on construction of LNG pipelines and industrial roads in Alaska and plans to transfer federal land to the state to speed up the project.

Korean enterprises cautiously assess investment risks, although the project has great potential, South Korea enterprises are cautious about it. An anonymous industry source said: "No final decision has been made yet, and a comprehensive assessment of the investment scale and commercial feasibility is needed." South Korea companies hope that by participating in the US LNG project, they will strive for more initiative in trade negotiations in response to US tariffs on imported cars and 25% tariffs on steel and aluminum (effective March 12).

South Korean Enterprises LNG Field Strength Overview

The South Korea enterprises to participate in the talks have deep industry accumulation: GS Energy has more than 20 years of LNG import and distribution experience, operating South Korea 7 large LNG receiving stations. Analysts pointed out that if South Korean enterprises eventually participate in the project, it will not only deepen the energy cooperation between the United States and South Korea, but also reshape the LNG market pattern in Northeast Asia.