President Donald Trump on Wednesday announced that he had secured a deal with the Republic of Korea to spend $54 billion on a long-desired Alaska natural gas pipeline project, part of a $200 billion package of investments that include a major power plant in Texas and several nuclear power plants. South Korea’s trade minister quickly shot down that claim, saying the government is simply reviewing the Alaska project and will proceed with investment “only if its commercial viability is established,” the Korea JoongAng Daily newspaper reported.
Trump spoke in glowing terms of an Alaska liquefied natural gas project as a sure accomplishment – even though half a century of efforts by state and federal officials and the energy industry have failed to make the project a reality, and even though Korean officials have disputed his claim that they are committed to investing in it. “This alone will be one of the largest energy projects in American history and a gigantic win for the people of Alaska,” Trump said at the event, held in the White House’s Oval Office. “It will create up to 12,000 construction jobs immediately and 1,000 operational jobs. It’ll also save Alaska households up to $1,500, maybe even as much as $2,200 a year in energy costs. It’s amazing.”
The Alaska LNG investment is part of a “colossal package of investments” stemming from his trade and tariff policies that make “a major step toward securing our critical energy supply chain, ensuring American energy dominance, and making our partnership with South Korea and the entire Pacific region stronger than ever before,” Trump said. South Korea’s industry, trade and resources minister quickly shot down Trump’s claim about securing $54 billion for the Alaska project. Minister Kim Jung-kwan said the Korean government is simply reviewing the Alaska project and will proceed with investment “only if its commercial viability is established,” the Korea JoongAng Daily newspaper reported.
Trump made the announcement while flanked by a crowd of men that included three cabinet members, Republican Gov. Mike Dunleavy and U.S. Sen. Dan Sullivan, R-Alaska, and U.S. Rep. Nick Begich III, R-Alaska. Also in the group was Brendan Duval, chief executive of the Glenfarne Group, the investment company leading the current proposal for a natural gas project in Alaska. The current proposal is to ship gas from the North Slope through a yet-to-be-built 807-mile pipeline from the North Slope to tidewater at Southcentral Alaska’s Cook Inlet, where it would be liquefied and put on tankers for shipment to Asian markets.
Alaska’s North Slope holds vast amounts of natural gas along with its oil resources. But geographic distance and costs have kept that natural gas stranded from markets, despite numerous schemes proposed over the years to build different types of pipeline systems to ship the product to either Asia or to the Lower 48. The natural gas pipeline has been a perennial issue in Alaska elections, including this year’s U.S. Senate race, which is hotly contested. The energy investments Trump announced also affect Texas, another state where there is a competitive Senate race.
Trump and others who spoke at the ceremony spent much of their time praising Sullivan, whom he called “a great senator who is totally responsible for this pipeline,” and urging that he be reelected.
