By Jarrett Renshaw and Trevor Hunnicutt
WASHINGTON, Sept 30 (Reuters) – President Donald Trump will announce on Wednesday plans for South Korea to invest $200 billion in US projects, including $54 billion to build the long-planned Alaska liquefied natural gas project, a White House official said.
The announcement will detail the first major projects under a broader $350 billion strategic investment package South Korea made as part of a trade agreement with Washington last year. The $350 billion package includes $150 billion for shipbuilding and $200 billion for strategic investments.
The White House official said the investments would include the Alaska LNG pipeline project, eight large-scale nuclear power plants and a 6-gigawatt power generation facility in Texas.
The announcement would be part of a series of economic and investment deals Trump is highlighting ahead of November’s midterm elections, as he seeks to reinforce his economic record amid voter concerns over the Iran war and high gasoline prices. The Alaska LNG project also comes as Republicans seek to retain incumbent Senator Dan Sullivan who faces Democrat Mary Peltola.
“Today, President Trump will announce major energy infrastructure investments that deliver on his day one promises to unleash American energy, unlock Alaska’s extraordinary resource potential, and accelerate America’s nuclear energy renaissance,” White House spokeswoman Taylor Rogers said.
The Alaska LNG project would include an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska’s southern coast, allowing the fuel to be shipped to Asian markets. The project is designed to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually, according to the White House.
Trump has repeatedly promoted the project as a way to expand U.S. energy exports and strengthen ties with allies including South Korea and Japan.
The project has faced years of uncertainty over its cost, financing and commercial viability. South Korea’s investment could provide a potential source of financing, although Seoul has previously said projects under its US investment package must meet commercial viability standards.
South Korean opposition lawmakers have raised concerns about the commercial viability and fiscal risks of investments in US projects.
“Before considering political needs or diplomatic demands, however, it was necessary to thoroughly verify the commercial rationale and viability of any investment that put a tremendous burden on the public,” Kim Sung-won, a South Korean lawmaker who chairs parliament’s trade committee, told Reuters on Wednesday.
South Korea’s industry ministry said last week that a more than 6-gigawatt gas-fired power plant in Encinal, Texas, was the first project selected under the $200 billion strategic investment program. The ministry was also considering the construction of eight large nuclear reactors and the Alaska LNG project.
COMMITMENTS NEED TO BE BINDING
Japan’s two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built.
Glenfarne, the project’s developer, said in March it had lined up commitments for 13 million tons a year, but needed another 3 million tons to secure financing and make all commitments binding. It did not immediately respond to a request for comment about Wednesday’s plan.
The eight nuclear plants would form part of Trump’s effort to expand U.S. nuclear generation as electricity demand rises, including from data centers and manufacturing. South Korea has been discussing a potential investment in U.S. nuclear projects as part of the broader package.
The Texas gas-fired power project is expected to supply electricity to energy-intensive facilities, including semiconductor plants and data centers. South Korean officials have said the project was selected after reviews of its commercial viability.
(Reporting By Jarrett Renshaw, additional reporting by Heejin Kim; Editing by Nick Zieminski and Timothy Gardner)
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