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Tread carefully on the Alaska LNG deal

Published: 16 Apr. 2025, 00:00

Ahn Duk-geun, minister of trade, industry and energy, front right, and Alaska Gov. Mike Dunleavy, front left, engage in a discussion at The Plaza Seoul in central Seoul on March 25 to discuss energy cooperation between Korea and the United States. [INDUSTRY MINISTRY]

Trade talks between Korea and the United States are accelerating. U.S. Treasury Secretary Scott Besent recently named Korea as one of five high-priority nations — alongside Japan, Britain, Australia and India — for upcoming tariff negotiations. Acting President Han Duck-soo added that a virtual meeting with U.S. officials concerning the Alaska liquefied natural gas (LNG) project could take place within days. For Korea, where exports are a lifeline, reducing tariff uncertainty is a necessity. But the inclusion of the Alaska LNG project in the conversation is cause for concern.

The Alaska LNG project is a formidable undertaking. It involves laying a 1,300-kilometer (808-mile) pipeline across permafrost, where construction can proceed only a few months each year. Global energy giants like ExxonMobil and BP once considered the venture but walked away. Even China, under the first Trump administration, explored participation before concluding that the project lacked commercial viability.

Yet U.S. President Donald Trump is pushing it again. The estimated $44 billion price tag could bring construction jobs to Alaska and open new avenues for U.S. LNG exports. Washington is seeking investment from Korea, Japan and Taiwan. Korea might see participation as a way to strengthen its position not only on tariffs, but also in defense cost-sharing talks. Still, the risks outweigh the potential leverage.

A change in administration could scuttle the project. Should a Democratic administration return in three years, opposition to fossil fuel expansion could shelve the entire effort. Korean investment, in that case, could be lost. No less troubling is the possibility that a hasty decision — driven by political considerations — could tie the hands of the next Korean government.

Acting President Han Duck-soo, right, speaks to Alaska Gov. Mike Dunleavy at the government complex in Jongno District, central Seoul, on March 25. Dunleavy is also scheduled to meet Ahn Duk-geun, minister of trade, industry and energy, and Joseph Yun, acting U.S. ambassador to Seoul, during his two-day trip to Korea, which is intended to shore up economic ties between Korea and Alaska. Representatives from Glenfarne Group and the Alaska Gasline Development Corporation are accompanying the governor on the trip. [PRIME MINISTER'S OFFICE]

This is where Han’s expertise should be an asset. As one of Korea’s most seasoned trade negotiators, he must lead with caution, not ambition. Any move tied to the LNG deal could quickly become politicized.

The United States may be shifting toward stability after China's retaliatory moves, including rare earth export threats. Early talks with five allies reflect that change.

A polar bear sow and two cubs are pictured on the Beaufort Sea coast within the 1002 Area of the Arctic National Wildlife Refuge in this undated handout photo provided by the U.S. Fish and Wildlife Service Alaska Image Library on December 21, 2005. [REUTERS/YONHAP]

Korea should not rush. There is no need to accept a high-risk energy project as the price of entry into broader negotiations. Strategic patience, not premature commitment, is what this moment demands.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.