President Donald Trump is expected to announce on Wednesday plans to tap South Korea’s pledged $350 billion strategic investment package for about $54 billion to help build a liquefied natural gas facility in Alaska and fund other U.S. projects, according to two people familiar with the discussions.
The announcement would be part of a series of economic and investment deals Trump is highlighting ahead of November’s midterm elections, as he seeks to reinforce his economic record amid voter concerns over the Iran war and high gasoline prices. The Alaska LNG project also comes as Republicans seek to defend their Senate seat in Alaska, where incumbent Republican Dan Sullivan faces Democrat Mary Peltola in a closely watched race.
The White House schedule says Trump is due to make an announcement at 3:30 p.m. ET, but provides no details about its subject.
The $54 billion would be directed toward Alaska LNG and other projects, the people said. The investment package was part of a trade agreement reached between Washington and Seoul last year.
The Alaska LNG project would include a pipeline carrying natural gas from the North Slope to a liquefaction facility on the state’s southern coast, allowing the fuel to be shipped to Asian markets.
Trump has repeatedly promoted the project as a way to expand U.S. energy exports and strengthen ties with allies including South Korea and Japan.
The project has faced years of uncertainty over its cost, financing and commercial viability. Investment from Seoul could provide a potential source of financing.
South Korean opposition lawmakers have raised concerns about the commercial viability and fiscal risks of investments in U.S. projects.
“Before considering political needs or diplomatic demands, however, it was necessary to thoroughly verify the commercial rationale and viability of any investment that put a tremendous burden on the public,” Kim Sung-won, a South Korean lawmaker who chairs parliament’s trade committee, told Reuters on Wednesday.
Kim said South Korea’s National Assembly would closely examine the profitability of U.S. investment projects and the benefits for Korean companies.
Japan’s two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built.
Glenfarne, the project’s developer, said in March it had lined up commitments for 13 million tons a year, but needed another 3 million tons to secure financing and make all commitments binding.
U.S. and South Korean officials have been working to identify projects for Seoul’s investment package, with Alaska LNG, nuclear power and a gas-fired power project in Texas among those discussed.
(Reporting By Jarrett Renshaw, Editing by Nick Zieminski)