US–South Korea deal puts $200bn energy commitments in focus
Donald Trump is expected to outline investments in US energy projects, including an Alaska LNG pipeline and a Texas gas-fired plant. The commitments form part of a wider trade deal, but delivery details remain unclear.
Donald Trump is expected to announce $200bn in South Korean investment commitments for US energy projects at the White House on Wednesday. The package is tied to a trade and investment deal signed last November, under which South Korea committed $200bn to strategic sectors and $150bn to US shipbuilding.
The White House says $54bn is planned for an Alaska liquefied natural gas project. It describes a 1,300km pipeline linking the state’s North Slope to an export terminal in southern Alaska. The package is also expected to include nuclear power plants and a 6-gigawatt gas-fired facility in Texas.
South Korea’s Ministry of Trade, Industry and Resources said last week the Texas plant, planned for Encinal, was the first project selected under its strategic investment programme. The source report does not specify the nuclear projects or how much of the announced investment is finalised, or when funds will be delivered.
Under last November’s deal, the US agreed to lower tariffs on some South Korean imports, including cars and auto parts. The report says certain tariffs fell from 25 to 15 per cent.
The announcement comes during the US midterm campaign, with competitive Senate races in Alaska and Texas. The report links the projects to those races but does not establish that electoral considerations drove the investment commitments.
