Trump threatens to ‘double’ South Korea’s costs if it delays Alaska LNG deal

US President Donald Trump has warned South Korea it could face higher costs if it does not move quickly on an investment in the proposed Alaska liquefied natural gas (LNG) project, even as Seoul maintains that no final investment decision has been made.

“If they don’t want to do it, that’s OK with me. I’ll just charge them more,” Trump told reporters at the White House on Friday. “Tell them if they don’t sign shortly, I’m going to double it up.”

Trump did not specify what he meant by doubling the cost. South Korean media raised the possibility that he was referring to tariffs, given his previous threats to increase duties if Seoul failed to deliver on investment commitments.

Asked whether he had announced South Korea’s participation in the Alaska LNG project prematurely, Trump said he “didn’t jump the gun.” Seoul, however, has said its participation remains subject to a review of the project's commercial viability and domestic legal procedures. South Korea’s industry ministry has disputed the suggestion that a specific investment amount had been finalised.

Seoul pushes back on investment claims

The disagreement comes after Trump announced South Korean participation in several US energy and infrastructure projects, including the Alaska LNG development.

The proposed project involves an extensive pipeline system connecting gas resources on Alaska’s North Slope with an LNG export facility in the southern part of the state. Its high construction costs and challenging terrain have raised questions about its commercial viability. Reuters reported that estimated project costs could reach $44.5 billion to $54.5 billion, significantly above the cost of comparable Gulf Coast LNG projects.

South Korean officials have said the Alaska project was still being evaluated rather than formally approved. Seoul is also seeking safeguards that would protect investors if the project fails to generate adequate returns.

The commercial assessment is particularly important because the pipeline would cross mountainous and permafrost terrain, potentially increasing construction costs and extending the development timeline.

Trump announces separate $8.4 billion oil project

Trump has also claimed that South Korea’s US investment package includes an additional $8.4 billion enhanced oil recovery (EOR) project. “The Republic of Korea Deal keeps getting BETTER! 8.4 Billion Dollars for an enhanced Oil Recovery Project. Producing more Oil and Gas means American Energy Dominance and Energy Security in the World for the Future!” Trump wrote on Truth Social.

EOR involves injecting substances such as carbon dioxide into mature oil fields to increase pressure and recover crude that would otherwise remain underground.

However, South Korean officials have indicated that the project was not included in the agreement between the two countries. Yonhap reported that a South Korean industry ministry official was surprised by Trump’s announcement and said the investment agreement was limited to projects specified in the bilateral fact sheet.

The dispute adds another layer of uncertainty to the implementation of the broader US-South Korea investment agreement, under which Seoul has pledged substantial investment in the United States.

South Korea has already transferred $2.4 billion for the construction of a gas-fired power plant in Texas as part of its investment commitments. Further decisions on the Alaska LNG project and other proposed investments are expected to depend on commercial assessments and the outcome of ongoing US-South Korea trade discussions.