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South Korea's POSCO International has begun reviewing participation in the U.S.-led Alaska liquefied natural gas (LNG) project, becoming the first Korean company to officially examine involvement in the massive energy development. The move comes as U.S. President Donald Trump shows a strong interest in the project, as per a report by Pulse, the English service of Maeil Business Newspaper Korea.
Citing foreign media reports on Friday, Pulse reported that POSCO International signed a preliminary agreement on Wednesday at the Gastech exhibition in Milan with Glenfarne, the project's developer, for the annual supply of 1 million tons of LNG over 20 years. The contract also includes a provision for supplying POSCO steel products for a 1,300-kilometre pipeline required for the project. The company stated that the agreement is a non-binding letter of intent, and it will make a final decision on participation after obtaining board approval and conducting internal reviews of business feasibility and profitability. "POSCO International is reportedly considering an off-take arrangement in which the buyer commits to LNG purchases before production begins, while also examining profitability of supplying steel for the 1,300 km pipeline," the report said. The Alaska LNG project involves transporting natural gas extracted from Alaska's North Slope through a newly built 1,300 km pipeline to a liquefaction plant in Nikiski, near Anchorage, for export. Initially proposed over a decade ago, the project stalled after ExxonMobil and other U.S. energy companies withdrew over high investment costs and risks. It regained momentum in 2025 after Trump signed an executive order supporting the plan shortly after taking office. As per the report, Trump said in the U.S.-Korea summit that took place in August that "Korea, along with Japan, plans to invest in the Alaska LNG development project." Glenfarne also signed a letter of intent with Japanese utility JERA on September 10th, 2025, to supply 1 million tons of LNG annually for 20 years. The developer aims to secure a final investment decision by the end of the year. The United States has been pressing Korea and Japan to join the Alaska LNG project via multiple channels, including bilateral trade negotiations. During tariff talks, Korea and Japan pledged $350 billion and $550 billion in U.S. investments, respectively. According to the report, U.S. Commerce Secretary Howard Lutnick cited the Alaska LNG project as an example of Japan's investment commitment in a broadcast interview on Thursday, saying that, "Once approved by the president, construction workers will be hired and Japan will provide the capital. They send money, we build the pipeline, and when cash flow begins, the United States and Japanese governments split the profits 50-50 until Japan recoups its investment. After that, the United States keeps 90 per cent of the profits." Glenfarne CEO Brendan Duval said in a press release that POSCO International's participation would accelerate the project's development. POSCO International added that further details remain confidential under a nondisclosure agreement. (ANI)
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