President Donald Trump could announce as soon as Wednesday that his administration intends to use South Korea’s strategic investment fund for several major US projects including roughly $54 billion for the planned Alaska LNG facility, according to two people familiar with the discussions.
The move would come as part of a flurry of economic and investment announcements ahead of November’s midterm elections, as Trump seeks to bolster his administration’s economic record to shore up voter support.
Recent national polls show Trump’s overall approval below 40%, with voters particularly expressing concern about the Iran war and high gasoline prices.
Alaska has become a central stage for Republicans battling to maintain control of the US Senate, with many analysts regarding the contest there as a toss-up.
The Alaska LNG project would include a pipeline to transport natural gas from Alaska’s North Slope to a liquefaction facility on the state’s southern coast, where it could be shipped to Asian markets.
It would be the first US project with direct access to Asia, the fastest-growing market for liquefied natural gas.
Japan’s two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary deals to buy a combined 2 million metric tons a year from Alaska LNG should it be built.
Glenfarne, the project’s developer, in March said it had lined up commitments for 13 million tons a year. It needed agreements for another 3 million tons and to make all commitments binding, to line up financing, the company said.
(Reporting by Jarrett Renshaw and Trevor Hunnicutt in Washington; Additional reporting by Curtis Williams in Houston; Editing by Mark Porter, Nathan Crooks and Sonali Paul)