Chris Wright, the U.S. Secretary of Energy, stated on the 24th (local time) that the U.S. is coordinating with South Korean, Japanese, and other companies to participate in the Alaska Liquefied Natural Gas (LNG) project, one of President Donald Trump's election pledges, and expects to commence construction within a year.

During a press conference held at the New York Foreign Press Center, Secretary Wright said, “We are in discussions with several companies, including Japanese, Korean, and Asian firms, regarding participation in the project.”

He further noted, “The potential for the Alaska LNG project appears quite strong, and I believe this project should break ground within the next 12 months. Although construction will take several years, the greatest advantage is the very short shipping distance to our excellent allies in East Asia, such as Japan. Ultimately, the most important factor is that the gas produced there will not be more expensive than gas from any other LNG export terminal,” he emphasized.

The Alaska LNG development project involves constructing a 1,300 km pipeline to transport natural gas extracted from the Prudhoe Bay gas field in northern Alaska to Nikiski in the south and building a liquefaction plant in Anchorage. The initial investment cost for construction alone is expected to reach $45 billion (approximately KRW 64 trillion).

The challenge lies in installing the gas pipeline. Due to the harsh climate, the construction difficulty of installing the pipeline is quite high, and interference from environmental activists must also be considered. Given the massive scale of the project, if the construction period is extended due to unforeseen variables, the construction costs could increase astronomically.

Secretary Wright, seemingly aware of these concerns, explained that the pipeline installation would be easier than expected. He stated, “Fortunately, we built an oil pipeline from the northern slope of Alaska to the coastal area for oil export 50 years ago, completing it in two years. The gas pipeline will follow the same route, so most of the roads, support facilities, and pipeline routes are already in place. Therefore, it will be much easier than building the first pipeline,” he said.

He expressed confidence that the capital for the project would likely be a mix of American and Asian companies, with the U.S. Department of Energy providing some support through credit guarantees.

As Secretary Wright mentioned, some South Korean companies are considering participating in this project. Recently, POSCO International has formalized its consideration of participating in the project by entering into a preliminary agreement with energy company Glenfarne, a private investor, alongside the Alaska Gasline Development Corporation (AGDC) for LNG importation.

POSCO E&C, a subsidiary of the POSCO Group, is also known to be reviewing the project, given its experience in constructing LNG terminals both domestically and internationally.

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