The Trump administration is accelerating efforts to bring South Korean investment into the long-delayed Alaska LNG project, a $46.1 billion energy infrastructure initiative designed to boost American exports to Asia and support jobs in Alaska’s declining fossil fuel sector.
POSCO International, one of South Korea’s largest trading and energy firms, signed a preliminary agreement with Glenfarne Group on January 11 to potentially import 1 million tons of liquefied natural gas (LNG) annually from the Alaska project for 20 years starting around 2030.
The agreement marks the first formal step by a Korean company toward participating in a project that Washington has identified as a strategic priority under President Trump’s second term.
In addition to LNG offtake, the non-binding agreement includes the potential supply of Korean steel for the project’s 806-mile pipeline.
South Korean steel manufacturers including SeAH Steel, HUSTEEL, and NextSteel are actively exploring opportunities to supply 42-inch diameter pipes, while Korean construction firms with large-scale plant engineering expertise are evaluating potential roles in building liquefaction facilities near Anchorage.
The Alaska Gasline Development Corporation (AGDC), along with its private sector partner Glenfarne, is targeting a final investment decision by the end of this year.
The project aims to move natural gas from Prudhoe Bay on the North Slope through a cross-state pipeline to liquefaction terminals, then ship the fuel to Asia-primarily South Korea and Japan.
The renewed momentum comes as South Korea looks to rebalance its trade surplus with the U.S. and diversify energy sources away from the Middle East.
In July, during high-level tariff negotiations, Seoul pledged $350 billion in future U.S. investments, with $200 billion earmarked for strategic sectors such as semiconductors, batteries, and energy.
American officials have reportedly steered some of those commitments toward the Alaska LNG project.
Alaska officials see the development as a vital economic lifeline. As oil production in Prudhoe Bay continues to decline, the LNG project could create thousands of construction and long-term operations jobs in the state.
Environmental reviews and regulatory hurdles have stalled the project for decades, but the Trump administration has moved to streamline federal approvals and attract foreign capital.
South Korean conglomerates including SK Group, Hanwha, and GS are also exploring potential participation, though most are awaiting clear demand signals or U.S. government guarantees before moving forward.
Korea Gas Corporation (KOGAS) is reviewing options to shift parts of its LNG procurement portfolio from the Middle East to North America.
A Korean industry executive familiar with the discussions said companies would be more likely to invest if Washington ensured political support and stable returns.
“It’s a trade-aligned energy project,” the executive said, “not just a market-based one.”
With Washington maintaining final oversight over the approved destinations for Korean investment, observers believe the U.S. may continue directing allied capital into domestic infrastructure that aligns with geopolitical and energy security objectives.
