President Donald Trump has announced plans for around $200 billion in South Korean investment in US projects, including energy infrastructure. The package includes eight proposed nuclear reactors, a $22.3 billion gas-fired power project in Texas and a proposed $54 billion Alaska LNG development. However, Seoul has indicated that the Alaska LNG investment is not yet final and remains subject to commercial viability and legal review. Reuters reported that South Korea confirmed the nuclear and Texas projects while expressing caution over the Alaska component.
Trump Announces $200 Billion South Korean Investment In US, Including $54 Billion Alaska LNG
Seoul has launched energy projects worth billions across America, but said Alaska LNG requires commercial and legal review before investment can proceed.
WASHINGTON (Reuters) - U.S. President Donald Trump announced South Korea's planned $200 billion U.S. investment, including $54 billion for Alaska LNG, as Washington moves forward with a trade agreement.
South Korea outlined three energy projects: Alaska LNG, a $22.3 billion gas-fired plant in Texas, and $120 billion for eight proposed large-scale nuclear reactors.
Trump made the announcement at the White House with Alaska Sen. Dan Sullivan, a supporter of the LNG project who is seeking another Senate term.
Trump called Alaska LNG one of the largest energy infrastructure investments in America, while Sullivan said it could create long-term energy and construction job opportunities throughout Alaska.
The White House says Alaska LNG would connect North Slope gas resources to a southern Alaska export terminal with a natural gas pipeline that is 807 miles long.
The project will be designed to transport about 3.9 billion cubic feet per day and produce up to 20 million metric tons per year of LNG for markets in Asia.
South Korean officials said no final investment decision had been made and that commercial viability and legal requirements were still subject to review before implementation by Seoul's government.
South Korea’s President Lee Jae Myung said the commercial viability of the Alaska LNG and nuclear projects must be confirmed before South Korea proceeds with investments under the broader agreement.
Alaska LNG Remains Under Commercial And Legal Review
Despite repeated political backing from Trump and senior officials in Alaska, Alaska LNG has been mired for years in uncertainty over financing, costs, and commercial viability.
Glenfarne, the developer, said it welcomed the announcement and would work with Washington and Seoul to finalise the investment structure and complete remaining project requirements for the proposed investment.
Glenfarne has secured preliminary commitments covering 13 million metric tonnes of annual LNG purchases, but says another 3 million tonnes are needed for final approval.
Japan’s JERA and Tokyo Gas have signed provisional deals to buy a combined 2 million metric tons a year of LNG if Alaska LNG ever becomes a commercial proposition.
Sullivan said Alaska LNG could provide low-cost energy for decades, create thousands of construction jobs, and supply gas for Alaskans and United States military facilities.
Sullivan was standing by for Trump’s announcement as he campaigns against Democratic challenger Mary Peltola in Alaska, where the proposed project has become an election issue as well.
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South Korea’s Wider United States Investment Package
The $200 billion strategic investment program is part of a $350 billion deal, which also includes $150 billion South Korea pledged to United States shipbuilding.
The other $200 billion is for strategic sectors. Under the agreement, Washington agreed to cut tariffs on South Korean cars, auto parts and other products.
Seoul’s investment will be limited to $20 billion a year under a legally binding agreement, and profits will be shared evenly until Seoul recoups its principal investment.
The nuclear program will include eight reactors, two of which will use South Korea's APR-1400 design, but details of the project, such as locations, have yet to be decided.
The Texas project is a 6-plus gigawatt gas-fired power project in Encinal, designed to provide power directly to energy-intensive artificial intelligence data centres.
Commercial operations are slated for 2029. South Korean officials said the Texas project was selected after commercial viability reviews.
The announcements come as Trump promotes economic policies before November 3 midterm elections, while Republicans seek to retain control of both congressional chambers.
Trump is scheduled to visit Texas and Alabama on Thursday, Ohio on Saturday and Nebraska on Monday, continuing campaign activity focused on economic policies nationwide.
Further work will centre on due diligence, financing and binding commitments, particularly for Alaska LNG, while Seoul maintains that commercial and legal conditions must first be satisfied.
Sprouts News will track developments as Washington and Seoul clarify investment commitments, financing structures and timelines for construction, nuclear projects and energy operations.
