President Donald Trump on Wednesday announced that he had secured a deal with the Republic of Korea to spend $54 billion on a long-desired Alaska natural gas pipeline project, part of a $200 billion package of investments that include a major power plant in Texas and several nuclear power plants.
South Korea’s trade minister quickly shot down that claim, saying the government is simply reviewing the Alaska project and will proceed with investment “only if its commercial viability is established,” the Korea JoongAng Daily newspaper reported.
Trump spoke in glowing terms of an Alaska liquefied natural gas project as a sure accomplishment — even though half a century of efforts by state and federal officials and the energy industry have failed to make the project a reality, and even though Korean officials have disputed his claim that they are committed to investing in it.
“This alone will be one of the largest energy projects in American history and a gigantic win for the people of Alaska,” Trump said at the event, held in the White House’s Oval Office. “It will create up to 12,000 construction jobs immediately and 1,000 operational jobs. It’ll also save Alaska households up to $1,500, maybe even as much as $2,200 a year in energy costs. It’s amazing.”
The Alaska LNG investment is part of a “colossal package of investments” stemming from his trade and tariff policies that make “a major step toward securing our critical energy supply chain, ensuring American energy dominance, and making our partnership with South Korea and the entire Pacific region stronger than ever before,” Trump said.
South Korea’s industry, trade and resources minister quickly shot down Trump’s claim about securing $54 billion for the Alaska project. Minister Kim Jung-kwan said the Korean government is simply reviewing the Alaska project and will proceed with investment “only if its commercial viability is established,” the Korea JoongAng Daily newspaper reported.
Trump made the announcement while flanked by a crowd of men that included three cabinet members, Republican Gov. Mike Dunleavy and U.S. Sen. Dan Sullivan, R-Alaska, and U.S. Rep. Nick Begich III, R-Alaska. Also in the group was Brendan Duval, chief executive of the Glenfarne Group, the investment company leading the current proposal for a natural gas project in Alaska.
The current proposal is to ship gas from the North Slope through a yet-to-be-built 807-mile pipeline from the North Slope to tidewater at Southcentral Alaska’s Cook Inlet, where it would be liquefied and put on tankers for shipment to Asian markets.
Alaska’s North Slope holds vast amounts of natural gas along with its oil resources. But geographic distance and costs have kept that natural gas stranded from markets, despite numerous schemes proposed over the years to build different types of pipeline systems to ship the product to either Asia or to the Lower 48.
The natural gas pipeline has been a perennial issue in Alaska elections, including this year’s U.S. Senate race, which is hotly contested. The energy investments Trump announced also affect Texas, another state where there is a competitive Senate race.
Trump and others who spoke at the ceremony spent much of their time praising Sullivan, whom he called “a great senator who is totally responsible for this pipeline,” and urging that he be reelected.
Sullivan is facing a stiff challenge from former Democratic U.S. Rep. Mary Peltola, who led in votes in the primary election. But Trump spent much of his time at Wednesday’s Oval Office event talking about retired Petersburg teacher Dan S. Sullivan, the third U.S. Senate candidate on the Alaska ballot whose candidacy has been challenged by state election officials.
“That Dan Sullivan is a disgraceful fraud,” Trump said.
“It’s so corrupt. The Democrats are corrupt. . . When they put up a man with his exact name, they picked him out of a hat. They said, ‘Anybody named Dan Sullivan in Alaska?”
Trump has said he is planning to come to Alaska to campaign for the senator and against the Petersburg candidate.
Sullivan, in turn, praised Trump and also described the natural gas pipeline projects as if it is a sure thing.
“Mr. President, I would say this is the most important project in our state by far,” he said. “This is the project that is going to keep our kids and grandkids in Alaska, with a great, bright future. This is the project that our state has been working on to try to get done for almost a half century.”
Positive reaction, and also skepticism
Peltola, whom Trump did not mention but who finished 8.1 percentage points ahead of ahead of Sen. Sullivan in Alaska’s Aug. 18 open primary, issued a statement saying she welcomes Korean investment in the gas project.
She cited “bipartisan work” she did in the state legislature and Congress and said she will continue to do that work if elected to the Senate. “Today’s announcement is great news for Alaska, and I appreciate President Trump’s work to unleash Alaska energy. I look forward to continuing this bipartisan work with the President as Alaska’s next United States Senator,” she said in the statement.
Also issuing a positive statement was former State Rep. Jonathan Kreiss-Tomkins, a Democrat running for governor.
“Alaska should welcome foreign investment that helps responsibly develop our resources, creates good-paying jobs, and builds new markets for Alaska’s natural gas,” Kreiss-Tomkins said in the statement, in which he describes himself as “an enthusiastic champion” of the gas project. “I’m thrilled to see President Trump’s support, and interest from South Korea, for moving this project forward,” he said.
However, the statements made by Trump, Sullivan and others on Wednesday differ vastly from the position articulated by the Republic of Korea government, according to news reports in that nation.
Source: Countryjournal2020