Seoul: A U.S. energy security expert has suggested that South Korea could gain geopolitical advantages by participating in an Alaska liquefied natural gas (LNG) project amidst U.S. President Donald Trump’s push for “reciprocity” with security allies and trading partners.
According to Yonhap News Agency, Paul Saunders, president of the Center for the National Interest, highlighted in a recent phone interview that joining the $44 billion megaproject would signal South Korea’s intent to strengthen its alliance with the United States. However, he also pointed out the uncertainty surrounding the economic benefits of such participation.
Although South Korea, Japan, and other countries have yet to make a decision on joining the project, President Trump informed Congress that these nations are eager to partner with the U.S., potentially investing trillions of dollars each. This underscores Trump’s hope to encourage their contributions.
The project aims to construct a 1,287-kilometer pipeline from the North Slope, a vast natural gas reserve, to southern Alaska. This pipeline would transport the gas, which would then be cooled to liquid form for shipment to Asia. Trump’s interest aligns with his agenda for America’s “energy dominance.”
Saunders noted that from a geopolitical standpoint, participating in the project would send a strong message of support for the U.S.-South Korea alliance. It also offers an opportunity for South Korea to diversify its energy sources away from the Middle East and Russia.
Saunders emphasized Trump’s focus on “reciprocity” in security and trade relations, noting that the administration is increasingly scrutinizing alliances and seeking greater balance. In response, South Korean policymakers are considering expanding LNG imports from the U.S. to address the trade surplus, a significant factor in Trump’s tariff strategy.
Last year, South Korea’s trade surplus with the U.S. amounted to $55.7 billion.
Saunders also discussed the economic feasibility of the pipeline project, citing factors such as global LNG prices and demand. He noted that economic criteria might not be the sole consideration, as governments and companies involved must weigh the commercial costs against perceived geopolitical benefits.
The Trump administration hopes for South Korea and Japan to invest in the project and become key customers for Alaskan gas. However, Saunders mentioned that Trump expects American companies to play a significant role in constructing the pipeline. He also noted potential challenges for foreign steel firms, which may face U.S. tariffs favoring American competitors.
Regarding atomic energy cooperation, Saunders offered a mixed view, stressing the importance of maintaining open communication with the Trump administration. He highlighted the “ADVANCE Act,” which allows certain foreign companies in allied countries to invest in the U.S. nuclear sector.
Saunders noted the improved environment for nuclear energy in the U.S., with bipartisan support. However, he recalled past tensions between South Korean and U.S. firms during Trump’s first term, suggesting potential friction in markets deemed important to America.