South Korea has begun talks with the United States about participating in a massive Alaska natural gas pipeline project, following President Donald Trump’s announcement that Asian nations want to partner in the venture.
The $44 billion pipeline would stretch 800 miles from the North Slope to southern Alaska, where the gas would be liquefied and shipped to Asian markets.
"My administration is working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partner with investments of trillions of dollars each," Trump told Congress on the 4th of March.
The ambitious project aims to transport about 100 million cubic meters of gas daily from Prudhoe Bay and Point Thomson to Nikiski near Anchorage.
Seoul Treads Carefully in Early Discussions
South Korea’s trade ministry confirmed discussions but stressed they were at an early stage. “Given the strong interest from the U.S., we are actively engaging in discussions, but at this stage, there is nothing concrete to announce,” a ministry official said.
Trade Minister Ahn Duk-geun recently visited Washington and noted the U.S. government’s “keen interest” in the project.
However, South Korean officials have yet to make any firm commitments, with Ahn telling reporters his government needs to check the plan’s economic worth.
"As an energy importer, Korea considers the diversification of energy sources a critical security issue and is actively exploring the possibility of diversifying its energy imports to include the United States," a Trade Ministry spokesperson stated.
Tokyo Weighs Benefits Against Investment Costs
Japan has shown interest but has not yet joined official talks.
Prime Minister Shigeru Ishiba noted expanding American gas imports would “meet the national interests” of both countries, potentially stabilising Japan’s energy supply while cutting the U.S. trade deficit.
Japanese Trade Minister Yoji Muto plans to visit Washington this month, partly to discuss potential tariff exemptions.
Chief Cabinet Secretary Yoshimasa Hayashi suggested that “investment in the U.S. will progress in various fields” if good business relations continue.
Long Pipeline Dreams Meet Fresh Energy Push
The Alaska pipeline has a long and bumpy history.
Work first began in the 1970s after gas discoveries in 1967, but was dropped due to cost concerns.
The idea came back in the 2000s under then-Governor Sarah Palin but fell through despite backing from major energy companies.
The current plan, led by U.S. group Glenfarne, would not be running until 2030 at the earliest. The mostly underground pipeline would send gas to Asia via tankers in a relatively quick seven to nine-day journey across the Pacific.
Trade Tensions Drive Fresh Energy Talks
Trump’s push for the pipeline comes amid his broader focus on narrowing trade gaps with Asian nations. The US currently has a $68 billion deficit with Japan and $70 billion with South Korea, figures that have grown in recent years.
Trump has threatened tariffs on countries with trade imbalances, putting pressure on Asian nations to find ways to buy more American goods. Energy purchases through the Alaska project could help cut these gaps.
“It seemed like the project was a huge priority for the US,” Ahn told reporters, adding that energy imports might be a “card we can play” in trade talks.
Experts Question Timeline and Business Case
Energy analysts remain wary about the project’s financial outlook. “South Korean firms don’t have much experience building pipelines in such frigid conditions, so there can easily be unexpected delays,” Kim Tae-sik of the Korea Energy Economics Institute pointed out.
Kim believes the pipeline might not work until 2040, by which time "demand for gas in South Korea will have fallen alongside the broader push to decarbonise."
He added that making the pipeline pay off would be "very difficult... unless the US or Alaska brings radically attractive terms to the table."
Despite these worries, U.S. officials remain upbeat. White House Energy Dominance Council co-chair Doug Burgum believes the project would help “raise money for the US Treasury.”
The talks come as Trump doubles down on fossil fuels, having declared a “national energy emergency” to boost U.S. drilling on his first day back in office.
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