South Korean lawmakers call for review of Alaska LNG project — Korea Herald
In South Korea, National Assembly lawmakers have called for a thorough review of the commercial viability of the Alaska liquefied natural gas export project before making an investment decision. As reported by the Korea Herald, the statements came after US President Donald Trump announced US investment projects involving Seoul.
Projects require assessment
The Alaska LNG project involves the construction of a 1,300-kilometre pipeline running south through the state. The White House put its cost at $54 billion. Lawmakers also pointed to the need for an additional review of the economic feasibility of a $120 billion project involving the construction of eight nuclear reactors in the United States.
Of the three US investment projects linked to South Korea's $350 billion investment package in the United States, commercial viability has so far been reviewed only for a $22 billion commitment for a gas-fired power plant in Texas. If Seoul cannot substantiate a project's commercial viability, it will require additional approval from National Assembly committees on strategy and finance, as well as trade, industry, energy, small and medium-sized enterprises, and startups.
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Lawmakers' positions
Han Jeong-ae, a lawmaker from the Democratic Party of Korea, said that the country's investment in the Alaska LNG project has not yet been confirmed. According to her, a decision will be made after a sufficient assessment of commercial feasibility in accordance with domestic legal procedures.
Her party colleague Park Ji-hye expressed doubts about the project's prospects due to a potential decline in demand for fossil fuels. She warned that if demand for natural gas falls faster than expected, large pipelines and gas liquefaction facilities could become stranded assets, making it nearly impossible to recoup substantial initial investments.
At the same time, Kwon Chil-seung, policy chief of the Democratic Party of Korea, described the investment announcement as a significant achievement amid US trade pressure and uncertainty in global trade. Representatives of the opposition People Power Party questioned the figures cited for the Alaska LNG project and the construction of nuclear power plants, saying there had been insufficient coordination with parliament.
