“Korean authorities convey to Alaska state lawmakers that ‘LNG investment must be commercially feasible’”

U.S. President Donald Trump announced that $50 billion of Korea's investment in the United States would be invested in the Alaska Liquefied Natural Gas (LNG) project, but local media reported that difficulties are continuing.

According to Alaska Public Media, a local Alaska media outlet, on the 11th (local time), Korean officials met with state legislators in Anchorage, Alaska on the 7th and conveyed their position that Korean investment can only occur after the Glenfarne Group, which leads the Alaska LNG business, makes a final investment decision.

Alaska State Senator Bill Bielehowski, a Democrat, said, "After the final investment decision is made, (Korea) said they will review the investment project to see if it is commercially reasonable," and added, "It is clear that Korea's decision to invest in this project has not been made at this time."

The media pointed out that President Trump is trying to invest $50 billion in Korean investment into the Alaska LNG project, but is facing long-standing economic difficulties.

The Korean government's rebuttal has continued immediately after President Trump's announcement, and it is not easy to meet the Korean government's standard that the Alaska LNG project must be commercially feasible.

The media reported that Alaska LNG can cost twice as much as LNG produced in the U.S. Gulf of Mexico and is more expensive than the LNG project being promoted on the Pacific coast of British Columbia, Canada.

“So far, we have not seen any buyers willing to pay significantly higher than the market price for Alaskan LNG,” said Jason Peer of energy consulting firm Poten & Partners. “There is still a long way to go before this project reaches the final stage.”

On the 30th of last month, President Trump unilaterally announced that Korea would invest more than $50 billion of its $250 billion investment in the United States into the Alaska LNG project. This is to support Republican candidates in Alaska, who are in a close race ahead of the midterm elections, and the Korean government reaffirmed its existing position that it will only invest when commercial rationality is secured.