South Korea has committed $54 billion to Alaska LNG, an 807-mile natural gas pipeline and a 20-million-metric-ton-per-year LNG export facility that would link North Slope gas production to a new terminal at Nikiski on the Kenai Peninsula.

President Donald Trump announced the commitment on September 30 as part of a broader U.S.-South Korea investment package. The deal forms a major energy component of the U.S.-South Korea Trade and Investment Initiative finalized in July 2025, under which Seoul pledged a $350 billion investment package in the United States.

The project carries an estimated cost of $44.5 billion to $54.5 billion, though some industry estimates place the potential cost above $60 billion. The development scope includes the pipeline, gas treatment infrastructure and the LNG export terminal.

How Would the Pipeline Be Configured?

The centerpiece is an approximately 807-mile, 42-inch-diameter pipeline running from Prudhoe Bay to Nikiski, with capacity to transport about 3.3 billion cubic feet of natural gas per day.

The system comprises a 739-mile mainline and an optional 63-mile Point Thomson lateral. It would supply Alaska's domestic market while feeding the Nikiski liquefaction plant. The route crosses remote and environmentally sensitive terrain between the North Slope and the Kenai Peninsula.

Construction is targeted to begin in late 2026. Pipeline completion is scheduled for 2028, with first gas delivery targeted for 2029.

What Is the Nikiski LNG Facility's Status?

The liquefaction and export facility at Nikiski would produce approximately 20 million metric tons of LNG annually for international markets. Its Kenai Peninsula location connects to existing energy infrastructure and marine transportation.

The LNG facility has a separate final investment decision targeted for 2027. First LNG exports are scheduled for 2030-2031.

Glenfarne Alaska LNG plans to reach FID on the pipeline in 2026. The project is being developed by 8 Star Alaska LLC, owned 75% by Glenfarne Group and 25% by the State of Alaska.

Which Contractors and Suppliers Are On Board?

The project has already assembled its contractor and supplier group:

• EPCM: Worley Limited is providing engineering, procurement and construction management services.
• Pipeline construction joint ventures: MasTec/Precision Pipeline; Quanta/Price Gregory; Michels/ASRC-Houston Contracting; Associated Pipe Line/Doyon/Cruz; Barnard/SICIM; and Spiecapag/U.S. Pipeline.
• Line pipe suppliers: Corinth Pipeworks of Greece, Europipe GmbH of Germany and South Korea's POSCO International.
• Strategic partners: Baker Hughes, Danaos and POSCO International.

Has the Project Secured Gas and Buyers?

Alaska LNG has secured gas supply commitments from ExxonMobil, Hilcorp Alaska, ConocoPhillips and Pantheon Resources/Great Bear Pantheon.

On the demand side, the project has signed non-binding LNG offtake agreements covering 13 million metric tons per year with prospective buyers in Japan, South Korea, Taiwan and Thailand, as well as TotalEnergies. The development still requires about 3 million additional metric tons per year in binding offtake agreements to support financing.

Within Alaska, ENSTAR Natural Gas has signed a 30-year letter of intent to purchase gas. The Donlin Gold Mine has committed to 50 million cubic feet per day.

What Approvals and Reviews Remain?

The Federal Energy Regulatory Commission's review covers the proposed pipeline, gas treatment facilities and LNG export infrastructure. The project has undergone extensive environmental assessment given its route through Alaska's remote terrain and potential effects on wetlands, permafrost and wildlife habitat, and has received the major federal environmental approvals described in the project's development record.

South Korean officials have previously indicated that commercial and domestic approval processes remain relevant to the investment. The announced commitment moves the project forward but does not replace the remaining financing and development milestones.

What Comes Next?

If the schedule holds, pipeline construction starts in late 2026, the pipeline reaches completion in 2028 and first gas flows in 2029, with LNG exports beginning in 2030-2031. The build-out could require thousands of construction workers, followed by hundreds of permanent operations jobs.

Alaska LNG is part of a broader wave of U.S. LNG infrastructure. In Louisiana, the $4 billion Commonwealth LNG facility in Cameron Parish is advancing toward a 9.5-million-metric-ton-per-year export terminal along the Calcasieu Ship Channel. Commonwealth LNG sits on the Gulf Coast; Alaska LNG would give the U.S. a second geographic export route, tying North Slope production to Nikiski.

The watch items: the pipeline FID in 2026, the LNG facility FID in 2027, and the roughly 3 MTPA of binding offtake still needed to underpin project financing.