Korea reaffirms Alaska LNG investment hinges on commercial viability

Industry Minister Kim Jung-kwan stated on Tuesday that South Korea would only join the Alaska liquefied natural gas (LNG) project if it demonstrated commercial viability. The government had just begun evaluating the proposal, he added. While economic concerns had previously hindered the project, the ongoing conflict in the Middle East had bolstered its strategic significance, Kim told lawmakers during a parliamentary audit.

He emphasized that weak commercial rationale had been the primary reason the project had failed to progress for decades. Kim asserted that a successful outcome for the project would bring significant strategic benefits to Korea, should Korea secure LNG supplies from Alaska. His remarks came in response to a question from Rep. Choi Soo-jin of the main opposition People Power Party.

Choi criticized the United States for presenting a substantial Korean investment as a certainty, despite the project's stagnation for four decades due to economic infeasibility. She referenced language in a joint fact sheet indicating that work would commence on the project. "Given that economic viability remains uncertain, this statement raises concerns," Choi noted.