It is reported that Mike Dunleavy, the governor of Alaska, who will visit Korea next week, will hold individual meetings with domestic energy corporations and discuss cooperation plans for the Alaska liquefied natural gas (LNG) project.
According to diplomatic, trade, and energy authorities on the 21st, Governor Dunleavy is set to visit Korea from the 24th to 25th, where he will meet with officials including Anduk-Kun, Minister of Trade, Industry and Energy, to discuss ways for Korea to participate in the Alaska LNG project.
During his visit to Korea, Governor Dunleavy is also reported to be coordinating a schedule for individual meetings with Korean corporations. Companies being contacted are said to include POSCO INTERNATIONAL, SK Innovation, GS Energy, and SeAH Steel. It is anticipated that Governor Dunleavy will meet with executives from these companies to explain the Alaska LNG development project, request investments, and engage in related discussions.
This project is a large-scale undertaking that transports natural gas produced in northern Alaska through a 1,300-kilometer pipeline to the southern coast, liquefies it, and then exports it. The total investment cost is estimated at $44 billion (about 64 trillion won).
If the Alaska LNG project is successful, the United States can expand energy exports and expect improvements in the trade balance. Korea can reduce its trade surplus with the U.S. to alleviate U.S. tariffs and other trade pressures, while diversifying its natural gas import sources to enhance energy security.
It is difficult to gauge whether Korean corporations will participate in the project, but it is reported that they have begun reviewing preliminary projects in anticipation of new market development and other effects. There are also expectations that corporations from sectors including energy, steel, shipbuilding, and construction could participate in the construction of LNG plants and supply equipment, creating new markets. However, this project also carries risks such as significant investment expenses and harsh climate conditions.