SEOUL, September 15 (AJP) - South Korean companies are emerging as early partners in a multibillion-dollar plan to export natural gas from Alaska, signaling growing alignment between Seoul’s energy ambitions and Washington’s push to expand liquefied natural gas (LNG) exports.
Posco International last week became the first Korean firm to formally engage with Glenfarne Alaska LNG, the project’s developer, signing a preliminary agreement that covers potential LNG imports and steel pipe supply.
If finalized, the nonbinding deal could lead to a 20-year contract for one million tons of LNG annually, while positioning Korea’s steelmakers to help construct the 807-mile pipeline linking Prudhoe Bay to the Nikiski port near Anchorage.
Other Korean steel producers — including SeAH Steel, HUSTEEL and Nexsteel — are closely monitoring opportunities to provide the 42-inch-diameter pipes required for the line. Conglomerates such as SK, Hanwha and GS are also examining possible participation in energy-related aspects of the development.
The $45 billion project, which aims to begin operations around 2030, is approaching a final investment decision by year’s end, according to Glenfarne and industry officials.
Korea Gas Corporation, the state-run importer, is considering redirecting some of its LNG contracts from Middle Eastern suppliers to U.S. producers, part of a strategy to diversify energy sources and narrow the trade imbalance with America.
reporter
Candice Kim
candicekim1121@ajupress.com
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