U.S. Secretary of Energy Jennifer Granholm.. Reuters Yonhap News. 

U.S. Secretary of Energy Jennifer Granholm announced on the 24th (local time) that the U.S. is in discussions with Korean companies regarding their participation in the Alaska liquefied natural gas (LNG) pipeline construction project.

During a press conference held at the Foreign Press Center in New York, Secretary Granholm stated, "We are in discussions with several companies, including Japanese, Korean, and other Asian firms, about (participating in the project)."

She added, "The potential of the Alaska LNG project appears quite strong, and I believe this project should commence within the next 12 months. While construction will take several years, the biggest advantage is the very short shipping distance to our excellent allies in East Asia, such as Japan. Ultimately, the most important thing is that the gas produced there will not be more expensive than gas from any other LNG export terminal," she emphasized.

This project involves extracting natural gas from the Prudhoe Bay gas field in northern Alaska, transporting it via pipeline to an ice-free port near Anchorage, liquefying it, and then exporting it to Asia and other regions.

The initial estimated capital for this project, which requires the installation of an 807-mile (approximately 1,297 km) pipeline traversing Alaska from north to south, along with the construction of infrastructure such as a liquefaction terminal, is approximately $45 billion (about 64 trillion won).

Secretary Granholm commented, "Fortunately, we built an oil pipeline 50 years ago from Alaska's North Slope to the coast for oil exports. It was built in two years. The gas pipeline will follow the same route, so most of the roads, support facilities, and pipeline routes are already in place. Therefore, it will be much easier than when we built the first pipeline."

Regarding the entities that will finance the project, she explained, "I am confident that it will likely be a combination of U.S. and Asian companies. The U.S. Department of Energy will provide some support through credit assistance and other means."

As Secretary Granholm mentioned, some Korean companies are reviewing their participation in this project.

Recently, Posco International became the first Korean company to officially signal its consideration for participating in the project by signing preliminary agreements for LNG import with Glenfarne, an energy company that is a private investor alongside the Alaska Gasline Development Corporation (AGDC).

Posco E&C, one of the Posco Group companies, is also reportedly reviewing this project due to its experience in constructing LNG terminals both domestically and internationally.

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