President Donald Trump, on Wednesday, unveiled an over $50 billion investment from South Korea for a natural gas pipeline in Alaska. The project, championed by Republican Sen. Dan Sullivan, forms part of a 2025 trade agreement with South Korea.
The project entails an 807-mile natural gas pipeline linking Alaska’s North Slope to a liquefied natural gas export terminal in southern Alaska. The White House stated that this project will decrease energy costs for Alaskans by ensuring a reliable and secure supply, PBS News reported.
The construction of the pipeline is expected to span three years, with exports of liquefied natural gas starting two years later, as per the report.
Commerce Secretary Howard Lutnick said that over $50 billion would be invested in the Alaska LNG project. Trump called the South Korean plans “one of the largest energy infrastructure investments in American history.”
White House did not immediately respond to Benzinga’s request for comments on the project details.
South Korea to Assess Alaska Project Viability
Seoul confirmed “Project North” in Alaska and said both countries will assess the project’s commercial viability before deciding whether to move forward.
South Korean Trade and Industry Minister Kim Jung-kwan said the government is prioritizing project viability and national interests because the initiative involves taxpayers’ money, Yonhap News reported. “We held consultations with the U.S. side while carefully examining the profitability and risks of each project, the prospects for recovering the investment and opportunities for South Korean companies,” Kim said.
Seoul Unveils Major US Energy Projects
Earlier in September, South Korea and the U.S. reached an agreement on Seoul’s planned investment in a Texas gas project worth around $22.3 billion. Seoul confirmed the deal on Thursday. The “Project Star” in Texas involves building a 6,472-MW gas-fired combined-cycle power plant to supply AI data centers. The first phase is expected to begin commercial operations in 2029, with full operations targeted for 2032, as per Yonhap News.
This marked Seoul’s first U.S. investment under the $350 billion trade agreement signed by the two countries in September 2025. South Korea pledged the amount in U.S. investments to secure better tariff terms. Under the trade deal, the U.S. lowered tariffs on South Korean imports to 15% from a threatened 25%, while Seoul also committed to purchasing $100 billion in U.S. LNG and other energy products.
Additionally, on Thursday, South Korea launched “Project Power,” committing up to $120 billion to build eight U.S. nuclear reactors, including $100 billion for construction and $20 billion in contingency funding, according to the publication.
South Korea Details Profit Split
South Korean President Lee Jae Myung said the LNG project and nuclear reactors must first be proven commercially viable before moving forward. The President said the profit will be split 50:50 until all principal and interest are repaid, after which the split will shift to 90:10.
According to Nikkei Asia, the U.S. is entitled to 90% of the profit after Seoul recoups the investment.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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