Reported by local Alaskan media… "Clear that South Korea's investment has not been finalized"

Although U.S. President Donald Trump announced that $50 billion of South Korea's U.S. investment funds will be injected into the Alaska Liquefied Natural Gas (Alaska LNG) project, local media have reported that obstacles continue.

According to Alaska Public Media, a local Alaskan media outlet today (local time the 11th), South Korean authorities met with state lawmakers in Anchorage on the 7th and conveyed their stance that South Korea's investment can only take place after Glenfarne Group, the company leading the Alaska LNG project, makes a Final Investment Decision (FID).

Bill Wielechowski, an Alaska state senator belonging to the Democratic Party, stated, "They said that after a final investment decision is made, they will review the investment project to see if it makes commercial sense," adding, "It is clear that as of now, a South Korean investment decision has not been made for this project."

Reporting this news, the media pointed out, "While President Trump is trying to channel $50 billion of South Korean investment into the Alaska LNG project, it faces long-standing economic hurdles."

This is because the South Korean government's refutations have continued immediately following President Trump's announcement, and it is not easy to meet the South Korean government's criterion that the Alaska LNG project must be commercially viable.

Furthermore, the media emphasized that Alaska LNG could cost twice as much as LNG produced in the U.S. Gulf Coast and even more than LNG projects being pursued on the Pacific coast of British Columbia, Canada.

Jason Feer of energy consulting firm Poten & Partners pointed out, "We haven't seen any buyers who are willing to pay significantly higher prices than market prices for Alaska LNG," adding, "The project still has a long way to go to reach the final stage."

On the 30th of last month, President Trump unilaterally announced that South Korea would invest more than $50 billion of its $250 billion U.S. investment fund into the Alaska LNG project. Designed to support the Alaska Republican candidate in a tight race ahead of the midterms, the South Korean government has reaffirmed its existing stance that it will invest only when commercial rationality is secured.

[ⓒ Global Economic Times. 무단전재-재배포 금지]