Industry Minister Says Alaska LNG Gains Strategic Value

South Korea's Trade Minister Kim Jung-kwan highlighted the strategic significance of the Alaska liquefied natural gas (LNG) project during ongoing negotiations with the United States. He told a parliamentary committee that the project could offer strategic value in the context of the Middle East war, but stressed that commercial viability remains a crucial prerequisite for investment.

The Alaska LNG project involves constructing a 1,300-kilometer pipeline to transport natural gas from Alaska's northern and southern coasts, which could be exported as LNG. Despite private U.S. companies withdrawing from the project due to low profitability in the 2010s, former U.S. President Donald Trump expressed strong interest in the venture.

South Korea remains in the initial review stage for the investment, with no confirmation yet. Minister Kim sees the project as beneficial for stable energy supply and demand, as LNG transported from Alaska would reach the U.S. about 30 days faster compared to the current route. However, he acknowledged the substantial investment costs, which could lead to expensive long-term LNG contracts if passed on to consumers.

Representative Choi Soo-jin of the People Power Party criticized the project, pointing out the use of the term 'agreement to initiate work' in South Korea-U.S. discussions, which she believed could serve as a justification if the investment fails. She called for a transparent audit of the process by the Board of Audit and Inspection.