Liquefied natural gas storage at Korea Gas Corp.’s plant in Incheon, west of Seoul, on July 31, 2025. (Image courtesy of Yonhap)
SEOUL, July 31 (Korea Bizwire) — South Korea has agreed to purchase US$100 billion worth of liquefied natural gas (LNG) and other energy products from the United States over the next four years under a tariff deal, U.S. President Donald Trump’s administration announced Thursday.
However, the plan does not involve purchasing Alaskan LNG or participation in the gas pipeline development project in the U.S. state, according to the Korean government.
The planned energy purchase comes as part of the tariff deal, under which the U.S. agreed to lower its reciprocal tariffs on South Korea to 15 percent from the proposed 25 percent, in exchange for massive investment pledges and market opening.
South Korea has agreed to make a $350 billion investment in the U.S., comprising a $150 billion fund for bilateral shipbuilding cooperation and another $200 billion fund for investment in advanced sectors, such as semiconductors, batteries and biopharmaceuticals.
“The $100 billion energy purchase is a level we can fully manage,” Kim Yong-beom, the presidential chief of staff for policy, said in a press briefing.
“While there may be some changes in the composition of our energy imports, such as shifting from Middle Eastern sources to American ones, the purchase plan aligns with the amount of energy our economy needs, so it will not be a burden,” Kim added.
Under the plan, South Korea will likely import $25 billion worth of energy from the U.S. every year during Trump’s tenure.
Last year, Korea imported $17.3 billion worth of American oil and natural gas, according to government data. American oil and gas accounted for 15.7 percent and 12.2 percent of Korea’s total imports, respectively, in 2024.
Fortunately, the state-run Korea Gas Corp.’s long-term contracts for importing LNG from Qatar and Oman are set to expire later this year, allowing the country to expand gas imports from the U.S., according to the company.
The state-run Korea National Oil Corp. was also reportedly considering replacing part of its strategic oil reserve with American light crude oil instead of Middle Eastern heavy crude oil.
Meanwhile, Trade Minister Yeo Han-koo told reporters in a separate press briefing held in Washington that Thursday’s trade agreement does not involve South Korea’s potential participation in the Alaskan LNG project, a key initiative of the Trump administration, or any commitment to purchase Alaskan gas.
However, Yeo did not rule out future participation, saying the Seoul government has requested data and reports on the project’s economic feasibility from Washington to later decide whether to take part in the initiative.
Trump has openly urged Seoul and Tokyo to participate in the estimated $44 billion project that seeks to build a 1,300-kilometer pipeline from the North Slope, a massive, proven reserve of natural gas, to southern Alaska for exports, mainly to Asian countries.
The U.S. president said last week Japan has agreed to form a joint venture for the Alaskan LNG project as part of their trade deal, according to foreign media reports.
(Yonhap)
