The Donald Trump administration is expected to announce as early as the 30th (local time) a plan to channel South Korea’s strategic investment fund into major projects in the U.S., including the Alaska liquefied natural gas (LNG) project, according to Reuters. A scale of approximately $54 billion is being discussed for the Alaska project.

Citing two sources familiar with the matter, Reuters reported on the 29th that President Trump may announce a plan to utilize South Korea’s investment fund for various U.S. projects, which includes the approximately $54 billion Alaska LNG initiative.

Previously, the South Korean government reported to the National Assembly on the 22nd that it would push forward with the Encinal gas-fired combined-cycle power plant construction project in Texas as the first of its $200 billion strategic investment projects in the U.S. In contrast, the Alaska LNG and U.S. nuclear power projects remained under further review at the time. Notably, it was reported that specific investment terms for the Alaska LNG project had not been finalized even as of last week's parliamentary report.

The Alaska project is a mega-scale energy undertaking that involves transporting natural gas from Alaska’s North Slope via a pipeline to the southern coast, where it will be liquefied and exported to Asia. Once completed, the project will enable the supply of LNG to Asian markets via the Pacific Ocean without passing through the U.S. mainland.

Reuters noted that this announcement is part of a series of economic and investment rollouts prepared by the Trump administration ahead of the November U.S. midterm elections. This suggests that South Korea’s investment projects in the U.S. may go beyond bilateral economic cooperation to be utilized as key economic achievements within the context of domestic U.S. political schedules.

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