Trump Doubles Down on Alaska LNG Project Citing South Korean, Japanese Support
Trans-Alaska oil Pipeline passing through Alaska’s northern Brooks Range. (Source: US Geological Survey)
Trump touts plans for “giant” Alaska LNG project with South Korean and Japanese support as he pushes for American energy independence. However, specifics remain scarce and even with Asian support the economics of the project remain in question, especially with a number of cheaper LNG projects coming online in the coming years.
During the first major political address of his second term in front of Congress, President Trump touted plans for the development of the $44bn Alaska liquefied natural gas (LNG) project.
Weeks earlier he had announced a possible joint venture with Japan following the country’s prime minister's visit to DC.
The proposal to develop a large-scale LNG terminal in Alaska and export its gas to markets in Asia had been stalled for years, but Trump appears set to push it ahead. Though Alaska LNG’s economics remain doubtful given its massive price tag.
Gigantic pipeline
South Korea’s and Japan’s alleged support also arrived in the context of increased tariffs threat.
“The administration is working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partner with investment of trillions of dollars each,” he stated during the address.
There has never been anything like it
It is unclear where the figure of “trillions of dollars each” originated as these amounts would rival the gross domestic product (GDP) of South Korea and Japan.
Russian Arctic projects
“There has never been anything like it. It will be truly spectacular. It’s all set to go. The permitting has gotten,” he continued.
He did not mention rivaling Russian Arctic projects which have been in operation for nearly a decade, with several more planned.
The Alaska project had received approval during the Biden Administration and an initial investor came on board earlier this year.
The plans include a 1,300 kilometer-long pipeline to carry the gas from Alaska’s North to a yet-to-be-built terminal in the state’s South, near Nikiski.
Map showing approximate route of Alaska LNG pipeline from North Slope to Kenai Peninsula. (Source: Author’s own work)
Trump and the Arctic
The remarks on Alaska LNG continue a pattern of Trump directing his focus to the Arctic.
In addition to remarks about buying or acquiring Greenland, including repeating them during Tuesday night’s address, his administration is also reportedly not opposed to re-engaging with Russia on Arctic energy development.
Prior to the invasion of Ukraine several major Western energy companies, including Exxon, had entered into joint ventures with Russian counterparts. Exxon and Rosneft had agreed to search for and develop offshore oil resources.
Sanctions forced Exxon to eventually scrap the deal.
Arctic LNG 2 sidelined
The topic of Arctic cooperation was reportedly broached during the recent meeting between the two country’s foreign ministers in Riyadh, Saudi Arabia.
For Russia, the prospect of sanctions relief for its existing energy projects may be of higher priority, than new projects. Its Arctic LNG 2 plant has been sidelined for two years and existing Yamal LNG also faces limited sanctions restrictions.
As Reuters reported the U.S. is drawing up plans to ease measures as part of the supposed Ukraine peace deal negotiations.
In a stark reversal to just months ago, talk in Europe about restarting gas imports, including reviving the damaged Nord Stream 2 pipeline, also points to a possible eventual normalization of energy relations with Russia.
