Alaska Gov. Mike Dunleavy is set to visit South Korea next week to encourage local energy companies to invest in Alaska’s large-scale liquefied natural gas project.
According to sources on Friday, Dunleavy will meet with South Korean officials on March 24 and 25, including Industry Minister Ahn Deok-geun, while coordinating meetings with Posco International, SK Innovation E&S, GS Energy and SeAH Steel, among others.
Valued at approximately $44 billion, the Alaska LNG project plans to construct a 1,300-kilometer pipeline to transport natural gas from northern Alaska to the southern coast of the state for liquefaction and export.
This is in line with the second Donald Trump administration’s initiative to increase LNG exports, which could potentially improve its trade balance.
On Thursday, US Department of the Interior announced plans to lift restrictions on the construction of LNG pipelines and industrial roads in Alaska and plans to transfer federal land to the state to facilitate building the pipelines.
Korea is expected to use LNG exports from the US as a bargaining chip to mitigate potential tariffs, particularly on automobiles, along with the 25 percent duties on aluminum and steel that went into effect on March 12.
While acknowledging the potential benefits, Korean companies area weighing their options for participating in the Alaska project carefully.
“Nothing has been decided yet. We need to consider the amount of potential investments as well as the business feasibility,” said an industry source who wished to remain anonymous. “We anticipate further details during next week’s meeting.”
The companies scheduled to meet with Dunleavy, namely Posco International and SK Innovation E&S, have established a strong foothold in the LNG sector. Posco International was the first private Korean company to secure a large-scale gas field development agreement in Myanmar. SK Innovation E&S, which holds a 49.9 percent stake in the Woodford gas field in Oklahoma, has been an active player in the US LNG market for over a decade.
With over 20 years of experience in LNG import and distribution, GS Energy operates seven large-scale LNG terminals in Korea. SeAH Steel, a specialist in steel pipes, expanded its local stainless steel pipe facilities last year in response to the fast-growing global LNG industry.
hyejin2@heraldcorp.com
