Korea has not agreed to invest $54 billion in the proposed trans-Alaska natural gas pipeline — and has not even agreed to invest at all, its national industry minister, Kim Jung-kwan, told reporters in Seoul on Thursday.
His remarks came hours after President Donald Trump held a news conference in the White House to incorrectly proclaim that officials from the Asian nation had agreed to spend $54 billion from a $200 billion investment pledge on the pipeline project.
Commerce Secretary Howard Lutnick, standing next to Trump during the announcement, had said that Korea would invest more than $50 billion in the project, which is intended to carry natural gas from Alaska’s North Slope to a to-be-constructed export terminal south of Anchorage.
“This morning, I lodged a strong protest with Lutnick as the announcement went far beyond what was agreed,” Kim told reporters in remarks covered by the Korea Times, Wall Street Journal and other news outlets.
Trump touts Korea as source of funding for long-desired Alaska gas project
According to a fact sheet distributed by the U.S. Commerce Department, Korea and the United States have “agreed to commence working on the Alaska LNG project.”
The fact sheet says that Korean companies “TBD” will work on the issue, and “details will be finalized at a later date.”
The Korean government has characterized its agreement with the U.S. government as merely a starting point to determine whether the gas project is worthwhile.
In a post on social media, Korean President Lee Jae Myung acknowledged “difficulties” in negotiations with the United States and said, “the Alaska LNG project will proceed to working level under the preconditions that 1) its commercial viability is confirmed and 2) it complies with the legal procedures of the Republic of Korea.”
During Wednesday’s misleading announcement, Trump was accompanied by Rep. Nick Begich, Alaska Gov. Mike Dunleavy and Sen. Dan Sullivan. All three are Republicans and close allies of the president.
Sullivan, whom Trump incorrectly called “governor” at one point during a Q&A session, is in a close race for re-election against Democratic challenger Mary Peltola, who initially applauded the pipeline announcement.
Senate Majority PAC, a group backing Peltola, said that given the Korean reaction, Trump’s statement on Wednesday was “a massive lie Dan Sullivan echoed to score points with voters.”
