[Anchor]
While our government categorized it as "initiating a review," the United States has pinned it down as a confirmed deal: the Alaska LNG project. It is a venture that global oil companies once entered only to withdraw due to concerns over commercial viability.
Reporter Kwon Ran examines whether there is truly any practical benefit for us to jump in now.
[Reporter]
The Alaska LNG project, designated by South Korea and the United States as "Project North."
It is a project to pipe natural gas from northern gas fields 1,300 kilometers to the southern coast, liquefy it, and export it to countries like South Korea and Japan.
It is a mega-scale project with an estimated total cost of 60 to 74 trillion won, aiming to produce 20 million tons annually.
Compared to LNG terminals along the U.S. Gulf Coast, the transportation distance to major East Asian consumer nations is shorter, which can significantly reduce time and costs.
However, the Alaska LNG development has drifted for a long time due to massive construction costs, harsh working conditions caused by extreme weather, and controversies over profitability.
Back in 2014, global oil giants such as ExxonMobil, ConocoPhillips, and BP jumped in, making it seem like it would take off in earnest, but they ultimately withdrew citing project costs and economic feasibility.
U.S. President Trump, upon returning to the White House, re-pushed this project and has pressured South Korea and Japan, which announced plans for investment in the U.S., by specifically singling them out for participation.
Japan considered a plan to invest $44 billion in the Alaska project last year, but did not include it in its actual U.S. investment projects.
The South Korean government limited its stance to initiating a review in consideration of tasks piled up, such as construction costs potentially surging far beyond expectations and the need to find more LNG buyers.
The government drew a line regarding President Trump's unilateral announcement that investment was confirmed, stating, "Nothing has been decided regarding the investment."
[Kim Jeong-gwan / Minister of Trade, Industry and Energy: I want to mention that we expressed our regret to U.S. Commerce Secretary Lutnick regarding things that went beyond what was agreed upon.]
However, as the U.S. government shows strong determination toward the Alaska LNG project, room remains for commercial viability to improve.
[Yoo Seung-hoon / Professor, Department of Future Energy Convergence, Seoul National University: There is no commercial viability right now. If we negotiate well with the U.S. to reduce various tariffs and taxes while receiving support from the U.S. government, we can secure commercial viability.]
As variables ranging from massive costs to changes in the U.S. administration are scattered throughout, the government repeatedly emphasized that it will pursue the project only if commercial rationality is confirmed.
(Video Editing: Park Ji-in, Design: Cho Su-in)
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