US President Donald Trump announced that the countries had agreed to work on the $50 billion Alaska LNG project, drawing a response from South Korea’s president, Lee Jae Myung, who emphasized that involvement in the project remains subject to commercial considerations. Lee stated that participation in the Alaska LNG project is dependent on its financial viability and legal compliance.
The South Korean investment plan includes $200 billion for various energy projects in the US, including nuclear power plants and a natural gas power facility in Texas. The investment plan includes the long-planned Alaska liquefied natural gas project, among other projects.
The Alaska LNG project aims to transport natural gas from fields on Alaska’s North Slope to the southern part of the state, where it would be liquefied for export to markets including Asia. The project has faced questions over its economics due to the large up-front investment required.
Industry Minister Kim Jung-kwan described the project as “high-risk” last year, saying participation would be difficult unless it could generate sufficient cash flow. The joint statement on the project mentioned that work is contingent on “commercial reasonableness,” without highlighting details on allocations toward the project.
The investment package includes $22.3 billion for a 6,472-megawatt natural gas power facility in Encinal, Texas, which will supply electricity to co-located data centers. The project will be led by developer Related Cos. and U.S. power company NextEra Energy, and the first phase is expected to begin commercial operations in 2029 and the full facility coming online in stages by 2032.
Another $120 billion has been allocated to plans for eight large-scale nuclear reactors in the US, with $100 billion earmarked for construction costs and $20 billion for contingency reserves. The nuclear agreement was signed by both governments as well as Westinghouse Electric, Korea Electric Power Corp., and Korea Hydro & Nuclear Power.
Trump said the investments would create “tens of thousands of American jobs” and turn South Korea’s commitments into “huge construction projects.” The two countries also plan to expand Korean companies’ participation in the Texas project across equipment supply, engineering, and construction, as well as long-term operations and maintenance.
The US intends to give Korean companies opportunities to supply equipment, including turbines, to similar projects in the country. The plan also calls for pursuing a potential significant minority investment in Westinghouse by Korean companies, with the terms subject to commercial negotiations.