Trump presented the Alaska LNG project as part of a larger South Korean investment package, but Seoul says it has only begun reviewing whether to participate.
President Donald Trump made an announcement Wednesday about a significant proposed investment from South Korea to support a natural gas pipeline project in Alaska. The event took place in the Oval Office of the White House where Trump was joined by Commerce Secretary Howard Lutnick and Senator Dan Sullivan of Alaska and Interior Secretary Doug Burgum. South Korea later said its participation in the Alaska project had not been finalized.
Glenfarne holds a 75% stake in the Alaska LNG project while the state of Alaska holds the remaining 25%. The company has not yet made a final investment decision. Glenfarne had previously targeted a decision in 2025 but now plans pipeline investment decisions in 2026.
Glenfarne Group CEO Brendan Duval and Glenfarne Alaska LNG president Adam Prestidge were present during the event. Duval said the project could begin delivering natural gas to Alaskans within three years and start exporting liquefied natural gas about two years later. Those timelines depend on financing and construction moving forward.
Trump said South Korea would provide about $54 billion for the Alaska LNG project as part of a larger package of U.S. investments.
The broader package includes up to $200 billion in South Korean investment under a $350 billion strategic investment commitment tied to a 2025 trade agreement. Plans discussed by the administration also include eight nuclear power plants and a large natural gas power project in Texas. South Korean officials said only the Texas project has been confirmed so far while the Alaska project remains under review.
Governor Mike Dunleavy earlier asked the Alaska Legislature to approve a new tax structure for the project. His proposal would replace the existing property tax system with a tax based on the amount of natural gas moving through the pipeline. Legislative negotiations later became tied to a separate proposal to extend corporate income taxes to some oil and gas businesses structured as pass-through entities.
The tax legislation stalled after the Alaska House rejected a conference committee version in July. Dunleavy introduced a compromise proposal in August that included a lower corporate tax rate for certain pass-through oil and gas companies. Lawmakers did not enact that proposal before the end of the session.
Becky Windt Pearson leads legal and corporate affairs for Glenfarne in Alaska. She has said the company expects the tax issue to return during the next legislative session. The structure of any new proposal could change depending on the Legislature and Alaska’s next governor.
Democratic gubernatorial candidate Jonathan Kreiss-Tomkins supports extending Alaska’s corporate income tax to oil producers that currently operate through pass-through structures.
Trump signed an executive order in January 2025 directing federal agencies to prioritize development of Alaska’s LNG resources. The order specifically called for agencies to prioritize permits for pipeline and export infrastructure connected to the Alaska LNG project. The proposed system would carry North Slope natural gas hundreds of miles to an LNG terminal at Nikiski in southern Alaska.
The White House announcement also came during a competitive Senate race between Republican Senator Dan Sullivan and Democratic former Representative Mary Peltola. The Associated Press reported that Trump highlighted the Alaska investment only days after promoting a proposed foreign-backed steel project in Iowa where Republicans are also defending a Senate seat. Trump has said he plans to increase campaign travel ahead of the November midterm elections.
The administration says the Alaska LNG project could provide a more reliable supply of natural gas for Alaskans and create an export route to Asian markets. South Korea’s investment commitment was negotiated as part of a trade agreement that reduced U.S. tariffs on South Korean cars and other products. It does not mean tariffs themselves are part of the investment.
Senator Dan Sullivan has been a long-time supporter of the Alaska LNG project and has encouraged Asian investment in the development. Glenfarne has secured preliminary commitments for about 13 million metric tons of LNG per year but Reuters reported that it still needs about 3 million additional tons to support financing. South Korea says any decision to invest in the Alaska project will depend on commercial viability and domestic legal procedures.
IMAGE: Author Hillebrand Steve, U.S. Fish and Wildlife Service CC0