The government will soon go on a local business trip to examine the feasibility of the liquefied natural gas (LNG) project in Alaska, which has emerged as a major agenda item in the U.S.-South Korea trade negotiations.
Vice Minister Choi Nam-ho of the Ministry of Trade, Industry and Energy noted during a lecture at the Korean Industry Association Forum titled "Future Energy Policy of South Korea in the Era of Great Transition" held on 15th at the Automobile Center in Seocho-gu, Seoul, that "the Alaska LNG project has been delayed after being pursued since the late 1990s to early 2000s" and added, "Currently, practical negotiations between South Korea and the U.S. are ongoing, and we are coordinating a business trip schedule for Alaska soon."
Vice Minister Choi said, "If the Alaska LNG is developed and comes to the Northeast Asian market, the transportation distance will be reduced by about half, so it could be meaningful for Korea even if the production cost is a bit higher," adding, "At the same time, because we need to lay down the liquefaction terminal facilities and pipelines, the initial expenses could be high, and the price may fluctuate depending on how the government provides backup."
He continued, "Since one of the largest exports for both Japan and Korea is automobiles, there's a thought that the Alaska LNG project could be part of Korea's tariff negotiation package with the U.S.," and remarked, "If automobiles can receive significant benefits in the tariff negotiations, participating in the Alaska LNG project is something we can compromise on."
Vice Minister Choi emphasized, "However, since there could be losses on the other side, the government has not yet reached a conclusion and is reviewing the matter internally while continuing practical negotiations," and noted, "Fortunately, the reciprocal tariffs have been postponed by 90 days, allowing us to buy time, and we will conduct negotiations during this period."