Washington: South Korea has expressed interest in joining hands with the United States and Japan for the gas pipeline development project in Alaska as part of efforts to improve its trade relations with U.S. President Donald Trump's administration, sources said Tuesday.
According to Yonhap News Agency, Seoul's Industry Minister Ahn Duk-geun conveyed this intention during meetings with U.S. Secretary of Commerce Howard Lutnick, U.S. Secretary of Interior and National Energy Dominance Council Chairman Doug Burgum, and other officials during his recent trip to Washington. The discussions also focused on the Trump administration's proposal to impose 25 percent tariffs on steel and aluminum imports, reciprocal tariffs, and potential new duties on cars, chips, and pharmaceuticals.
South Korea's participation in the Alaska liquefied natural gas (LNG) project is seen as a strategic move in its tariff negotiations with the U.S. The Trump administration has prioritized boosting oil and gas production. Japan and the U.S. have reportedly been discussing a joint venture for the project, a topic that was highlighted during a summit between Japanese Prime Minister Ishiba Shigeru and Trump last month.
A senior government official stated that U.S. interest in South Korea's participation stems from the need for solid demand to develop Alaska's gas reserves, which demand from Japan alone cannot satisfy. Japan and South Korea rank as the second and third largest LNG importers globally, respectively. The official noted that South Korea possesses vital technologies for constructing icebreakers and pipelines essential for the Alaska LNG project.
By expanding its purchase of American gas products through investment in the Alaska project, South Korea can potentially reduce its trade surplus with the U.S., a significant consideration for the Trump administration's reciprocal tariff impositions. However, the project could pose a financial burden on Korean companies, prompting the government to engage local companies and negotiate with the U.S. prudently.
Additionally, Ahn proposed that Korean shipbuilders could manufacture warships, tankers, and icebreakers for the U.S. on a preferential basis to strengthen bilateral cooperation in the shipbuilding industry. The proposal has reportedly been well-received by Washington. An official at the Ministry of Trade, Industry and Energy remarked on the U.S.'s fundamental view of South Korea as an important partner for industrial cooperation.