By Jarrett Renshaw, Gram Slattery and Trevor Hunnicutt
WASHINGTON, Sept 30 (Reuters) - US President Donald Trump announced on Wednesday plans for South Korea to invest $200 billion in US projects, including $54 billion to build the long-planned Alaska liquefied natural gas project.
The announcement, which Trump made in the Oval Office, amounts to the first set of major projects under a broader $350 billion strategic investment package South Korea made as part of a trade agreement with Washington last
year. The package included $150 billion for shipbuilding and $200 billion for strategic investments.
"Thanks to the agreements my administration has secured with the Republic of Korea, they will invest up to $200 billion," Trump said.
He said that the investment would include the construction of eight large-scale nuclear power plants, a liquefied natural gas pipeline in Alaska and a 6-gigawatt power generation facility in Texas.
The announcement is part of a series of economic and investment deals Trump is highlighting ahead of November's midterm elections, as he seeks to reinforce his economic record amid voter concerns over the Iran war and high gasoline prices. The Alaska LNG project also comes as Republicans seek to retain incumbent Senator Dan Sullivan who faces Democrat Mary Peltola. Sullivan was in the Oval Office for the Wednesday announcement.
The Alaska LNG project includes an 807-mile (1,299-km) pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska's southern coast, allowing the fuel to be shipped to Asian markets. The project is designed to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually, according to the White House.
Trump has repeatedly promoted the project as a way to expand US energy exports and strengthen ties with allies including South Korea and Japan.
The project has faced years of uncertainty over its cost, financing and commercial viability. South Korea's investment could provide a potential source of financing, although Seoul has previously said projects under its US investment package must meet commercial viability standards.
South Korean opposition lawmakers have raised concerns about the commercial viability and fiscal risks of investments in US projects.
"Before considering political needs or diplomatic demands, however, it was necessary to thoroughly verify the commercial rationale and viability of any investment that put a tremendous burden on the public," Kim Sung-won, a South Korean lawmaker who chairs parliament's trade committee, told Reuters on Wednesday before the White House announcement.
South Korea's industry ministry said last week that a more than 6-gigawatt gas-fired power plant in Encinal, Texas, was the first project selected under the $200 billion strategic investment program.
COMMITMENTS NEED TO BE BINDING
Japan's two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built.
Glenfarne, the project's developer, said in March it had lined up commitments for 13 million tons a year, but needed another 3 million tons to secure financing and make all commitments binding. It did not immediately respond to a request for comment about Wednesday's plan.
The eight nuclear plants would form part of Trump's effort to expand US nuclear generation as electricity demand rises, including from data centers and manufacturing. South Korea has been discussing a potential investment in US nuclear projects as part of the broader package.
The Texas gas-fired power project is expected to supply electricity to energy-intensive facilities, including semiconductor plants and data centers. South Korean officials have said the project was selected after reviews of its commercial viability.
(Reporting By Jarrett Renshaw, additional reporting by Heejin Kim; Editing by Nick Zieminski, Timothy Gardner and Sanjeev Miglani)
