WASHINGTON, Sept 30 (Reuters) - US President Donald Trump unveiled plans on Wednesday for South Korea to invest some$200 billion in US projects, but Seoul quickly suggested one key element, a$54 billion pipeline for an LNG project in Alaska, was not yet set in stone.
The announcement from the White House amounted to the first set of major projects under a broader $350 billion strategic investment package South Korea made as part of a trade agreement with Washington last year. The package included $150 billion for shipbuilding and $200 billion for strategic investments.
"Thanks to the agreements my administration has secured with the Republic of Korea, they will invest up to $200 billion," Trump said from the Oval Office.
He said the investment would include the construction of eight large-scale nuclear power plants, a natural gas pipelineand a 6-gigawatt power generation facility in Texas.
The announcement is the latest in a series of economic and investment deals Trump is highlighting ahead of November's midterm elections, as he seeks to reinforce his economic record amid voter concerns over the Iran war and high gasoline prices.
The pipeline project could carry political significance in Alaska, where Republican Senator Dan Sullivan faces a competitive reelection race against Democrat MaryPeltola. Sullivan attended Wednesday's announcement.
South Korea's government, however, said the pipeline project would only go forward if certain commercial and legal conditions are met. Seoul confirmed other elements of Trump's announcement, sayingit would invest $22.3 billion in a Texas gas power project to power AI data centers, as well as $120 billion to build eight nuclear reactors.
PROJECT LONG IN LIMBO
South Korea will begin reviewing the Alaska LNG project to assess its commercial viability and compliance with legal procedures, Seoul's industry ministry said in a statement.
"No decision has been made on whether to invest or on the size of the investment," it said.
South Korean President Lee Jae Myung also said in a post on X that the commercial viability of both the LNG project and the nuclear reactors must be confirmed before they proceed.
Any differences between Seoul and Washington over details of the deal could lead to disputes between the allies over its implementation, analysts in Seoul said.
The Alaska LNG project, if it ultimately goes forward, includes an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska's southern coast, allowing the fuel to be shipped to Asian markets. The project is designed to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually, according to the White House.
Trump has repeatedly promoted the project as a way to expand USenergy exports and strengthen ties with allies including South Korea and Japan.
But the project has faced years of uncertainty over its cost, financing and commercial viability.
South Korea's industry ministry said last week that a more than 6-gigawatt gas-fired power plant in Encinal, Texas, was the first project selected under the $200 billion strategic investment program.
COMMITMENTS NEED TO BE BINDING
Japan's two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built.
Glenfarne, the project's developer, welcomed Trump's investment announcement. It has lined up commitments for 13 million tons a year, but needs another 3 million tons to support a final investment decision and make commitments binding.
"Glenfarne will work with the US and Korean governments to finalize the investment structure and complete the remaining steps required to reach FID," it said in a statement.
The eight nuclear plants would form part of Trump's effort to expand USnuclear generation as electricity demand rises, including from data centers and manufacturing. South Korea has been discussing a potential investment in USnuclear projects as part of the broader package.
The Texas gas-fired power project is expected to supply electricity to energy-intensive facilities, including semiconductor plants and data centers. South Korean officials have said the project was selected after reviews of its commercial viability.
(Reporting by Jarrett Renshaw, Gram Slattery and Trevor Hunnicutt; Additional reporting by Heejin Kim, Kyu-seok Shim and Brenda Goh; Editing by Colleen Jenkins, Sanjeev Miglani, Jamie Freed, Christopher Cushing and Ed Davies)
