People familiar with the matter revealed that South Korea will invest US$200 billion in the United States, including the US$54 billion Alaska LNG project.

People familiar with the matter said that South Korea’s investment in the United States to be announced soon includes an Alaska LNG investment plan of approximately US$54 billion. (Reuters photo)

[Financial Channel/Comprehensive Report] People familiar with the matter said that US President Trump is about to announce South Korea’s investment of approximately US$200 billion (approximately NT$6.38 trillion) in the United States, including US$54 billion (approximately NT$1.72 trillion) for a long-stalled Alaska natural gas export plan.

"Bloomberg" reported that people familiar with the matter revealed that the proposed announcement is the first plan to receive support under last year's US-South Korea trade agreement, which includes South Korea's commitment to invest US$350 billion (approximately NT$11.17 trillion) in the United States. People familiar with the matter added that Trump is expected to make the announcement in the Oval Office on Wednesday.

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South Korea's support is important in developing plans to transport natural gas across Alaska, a plan aimed at exporting much of the gas to Asian buyers. People familiar with the matter mentioned that other energy plans, including nuclear energy, are also expected to attract some investment from South Korea.

Privately owned Glenfarne Group is responsible for the Alaska LNG plan and has signed preliminary agreements with LNG importers, but has not yet made a final investment decision. The company did not respond to the report.

The planned announcement is the latest example of Trump using his presidential power and international deal-making prowess to boost support for the Republican Party, which faces huge headwinds in November's midterm elections due to voters' dissatisfaction with the economy.

Republican Alaska Senator Dan Sullivan, who has long supported the Alaska LNG project, will face a challenge from Democratic former Representative Mary Peltola in this election. According to people familiar with the matter, Sullivan will also go to the White House on Wednesday to participate in the president's announcement, along with Alaska Republican Representative Nick Begich and Governor Mike Dunleavy.

The conflict in the Middle East has disrupted global LNG supplies, effectively blocking LNG shipments from Qatar and the United Arab Emirates, which accounted for about a fifth of global supply before the war.

This puts some of the world's largest buyers in Asia at risk of spot price fluctuations. Transporting LNG from Alaska does not solve the problem immediately. The construction period is expected to be up to four years, but in the long term, it is still considered to help solve energy supply problems.

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