Seoul: Second Vice Industry Minister Choi Nam-ho announced plans on Tuesday to visit the United States to evaluate the feasibility of a liquefied natural gas (LNG) project in Alaska, a significant topic in ongoing bilateral trade negotiations.
According to Yonhap News Agency, Choi, during a lecture in Seoul, mentioned that South Korea and the U.S. are engaged in working-level discussions concerning the Alaska LNG project. He expressed his intention to travel to Alaska soon to further address the issue.
U.S. President Donald Trump has recently underscored the interest of South Korea and other nations in collaborating with the U.S. to construct a pipeline from the North Slope, a substantial natural gas reserve, to southern Alaska. This pipeline would allow for the gas to be liquefied for shipping, primarily targeting Asian markets.
Choi highlighted the potential economic benefits for Korea, stating, "If the Alaska LNG project is developed and the gas is brought to the Northeast Asian market, the transportation distance would be roughly halved, which could make it economically viable for Korea, even if the production cost is slightly higher."
He further commented on the broader trade implications, noting, "Automobiles are one of our key export items, and the Alaska project could be considered part of our negotiation package regarding the new U.S. tariffs."
The potential participation in the Alaska LNG project might serve as an area "where concessions might be made," especially if South Korea can secure significant advantages in auto tariff negotiations, according to Choi. However, the Seoul government is still deliberating on the matter and remains in talks, as the U.S. has announced a 90-day pause in implementing "reciprocal" tariffs, which include a 25 percent tariff on South Korean products.
Acting President Han Duck-soo mentioned on Monday that President Trump has "apparently" directed his administration to initiate immediate tariff negotiations with South Korea, Japan, and India. Han anticipates that both sides will conduct a video conference "in the next one or two days" to discuss cooperation on the Alaska project.