Kim Jeong-kwan, the Minister of Trade, Industry and Energy, stated on October 6 that the Alaska liquefied natural gas (LNG) project has gained strategic value in terms of energy security following the recent Middle East conflict. However, he emphasized that the review process is based on commercial viability.
During a National Assembly audit session of the Ministry of Trade, Industry and Energy, Kim responded to a question from lawmaker Choi Soo-jin of the ruling People Power Party, saying, "There is clearly a new strategic value for Alaska LNG that has emerged due to the Middle East conflict."
Previously, on September 30, the U.S. and South Korea announced in a fact sheet regarding strategic investments that they would begin work related to the Alaska LNG project.
Choi pointed out that on September 22, the government referred to the Alaska LNG project as an undefined follow-up task, questioning the feasibility assessment and validation of the project's economic viability before the U.S. commits to investment, as stated in the fact sheet.
In response, Kim noted, "The fact sheet is a document we publicly shared with the U.S., and the contents reflect that perspective." He also highlighted that the business environment for Alaska LNG has changed compared to the past.
He explained, "While we previously assessed the commercial viability of the Alaska LNG project as low, the U.S. is now shifting from a private-led approach to a federally-led structure for these projects. Currently, LNG cannot come from the Middle East, and shipments from the Gulf are rerouted around the Cape of Good Hope instead of using the Panama Canal."
Kim added, "If the Alaska project succeeds and we can secure LNG, we believe it will have significant strategic value." However, he reaffirmed that any actual investment decision will be based on economic and business viability, stating, "The meaning of starting the review process is that it is predicated on commercial rationality."
Choi also pressed Kim on the relationship between the feasibility analyses of the Korea-U.S. strategic investment projects and the Alaska LNG project. Kim clarified, "I want to make it clear that projects 2 and 3 are not related to the Alaska project."
* This article has been translated by AI.
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