Domestic energy corporations' liquefied natural gas (LNG), wind power projects, and other ventures are being influenced by a single statement from U.S. President Donald Trump. President Trump has pressured Korean corporations to participate in the costly natural gas development project in Alaska and has also derailed domestic companies' U.S. offshore wind contracts with anti-wind policies.
During a joint address to Congress on 4th (local time) in Washington, D.C., President Trump said, "Japan, South Korea, and others want to be our partners (in the Alaska natural gas pipeline project) and will invest trillions of dollars each." Although the Trump administration requested Korean corporations' participation in the Alaska LNG project from Minister of Trade, Industry and Energy Ahn Duk-geun, who visited the U.S. at the end of last month, specific negotiations have not yet taken place, leading to the announcement as if Korean participation and investment scale were confirmed.
The Trump administration is promoting a project that involves producing natural gas from the northernmost gas field in Alaska and transporting it through pipelines to export terminals near Anchorage for sale in the Asian region. The pipeline alone is 1,287 kilometers long, and the initial expected project expense is around $44 billion (approximately 63 trillion won). The Trump administration's plan aims for major LNG importing countries, such as South Korea and Japan, to directly participate in gas field development and engage in imports. Although companies such as ExxonMobil and BP participated in the development project over a decade ago, the project was halted when private corporations withdrew due to declining natural gas prices and investment burdens.
Currently, the companies being mentioned as potentially participating domestically include POSCO INTERNATIONAL, which is engaged in the LNG business, and SK Innovation E&S. Both corporations cover the entire LNG-related value chain, from natural gas exploration, development, and production (upstream) to LNG production, transportation, and terminal storage (midstream), and power generation (downstream).
POSCO INTERNATIONAL has made a LNG purchase contract with Mexico Pacific, the operator of the LNG terminal in Texas, last year, and is increasing imports of U.S. LNG, positioning it as a key player should the Alaska project proceed. Domestically, it operates an LNG import terminal in Gwangyang and is involved in trading and power generation businesses. POSCO INTERNATIONAL stated it is "monitoring the situation regarding the Alaska LNG project."
Domestic corporations involved in wind power have been impacted by President Trump's pro-fossil fuel and anti-renewable energy stance. CS WIND announced on the 4th that its supply contract for wind turbine structures with the U.S. offshore wind farm, which was signed last November, has been terminated. The contract ended after the other party notified the termination at the end of last month. Although the exact scale of the contract was not disclosed, it was estimated to exceed 38 billion won.
Industry experts view this contract termination as a consequence of President Trump's aversion to wind energy that has paralyzed the U.S. wind industry. Immediately after taking office in January, President Trump signed an executive order halting leasing for new offshore wind projects and suspending permits for currently ongoing projects. Since then, cancellations of offshore wind projects have been occurring in the U.S.