US invites Asian officials in Alaska to explore $44 billion LNG project
Two people with knowledge of the plans said that the U.S. invited officials from Japan and South Korea to Alaska to discuss a gas pipeline project. Asian governments are considering U.S. investment in hopes of relief from the tariffs imposed by President Donald Trump.
The sources, who requested anonymity because the details were not made public, said that Trump's Energy Czar, Interior Sec. Doug Burgum and Energy Sec. Chris Wright would host the event on June 2.
One source confirmed that the event would include a trip to Alaska's North Slope. This is where the U.S. hopes to access stranded fields of gas through a proposed $44 billion pipeline. The pipeline would travel 800 miles (1300 km) through the vast state, before the gas was liquefied and shipped, mostly to Asian customers.
Trump has threatened trade tariffs while pushing allies such as Japan and South Korea into buying U.S. Energy. He said Tokyo and Seoul wanted to invest "trillions" of dollars in the pipeline project.
The Alaska meeting is unlikely to produce major deals relating to the long delayed pipeline project as initially hoped. And the size and experience of the foreign delegation is not clear, according the sources.
Shigeru Shiba, the Japanese prime minister, expressed optimism in a February private meeting with Trump despite doubts about the project's viability in Tokyo. Japanese and South Korean officials have expressed caution over a project that has been in the works since decades but has not made much progress due to cost and logistical issues.
The White House refused to answer questions specific about the event. In a statement, it said that Trump has "a proven track record of boosting American energy production" and "will restore our nation's status as a leader in global energy".
Requests for comments from the Energy and Interior departments were not answered.
The Economic Ministry announced that officials from Taiwan's CPC state-owned energy company, which signed in March a nonbinding agreement for investment in the pipeline project and to purchase the offtake, would attend the Alaska meetings. CPC has not responded to requests for comments.
Last week, South Korean trade minister Ahn Duk Geun stated that his government was invited to participate but the timing of this invitation was "very difficult". South Korea's presidential elections are scheduled for June 3.
Two sources confirmed that Japan's Trade Minister, Yoji Muto, was also invited. Two sources said that Muto's attendance would be problematic due to his parliamentary duties, and Tokyo's participation could be affected by the progress in Japan-U.S. negotiations.
A Japanese official said that no decision has been taken on Japanese participation.
One source stated that it may take some time to reach binding agreements for the pipeline project, as developers haven't yet completed a study on front-end engineering, which is needed to clarify project costs. The study will begin later in the year.
Sources said that the meeting on June 2 will also cover a wide range of topics, including collaborating with energy projects in Arctic. Burgum and Wright will then be attending the Alaska Sustainable Energy Conference, which takes place in Anchorage between June 3 and 5. Reporting by John Geddie in Tokyo, Tim Kelly in Washington, Jihoon Le in Seoul, and Ben Blanchard at Taipei. Editing by William Mallard.
(source: Reuters)
