The Trump administration, which kicked off the White House’s “Energy Week,” has had an overwhelming response from South Korean companies. Within a day from the start of “Energy Week,” South Korea’s energy companies announced four major partnerships with US companies to enter the US’s natural gas business. The high-level delegation is participating in the White House for these discussions include top executives from South Korean companies, such as Samsung, LG, SK, and Doosan.
South Korean President Moon Jae is accompanying this delegation, and the country is expected to pump in approximately $12.8 billion into the US economy in the coming five years. Korea Gas Corp. (the state-owned gas company) will be investing in liquefied natural gas projects in Alaska, Texas and Louisiana states. In contrast, the SK Group from South Korea agreed with General Electric Co. and Continental Resources Inc. for the shale gas business and shale gas fields development. The group will also promote the sale of the US LNG and LPG in Asia, South America, and Africa.
South Korea is one of the world’s major importers of LNG who has purchased eight cargoes of US gas from the Sabine Pass terminal of Cheniere Energy Inc. At present, Sabine Pass is the only terminal that is exporting shale gas. Many more terminals have been proposed along US coasts, which will be operational soon to export shale gas effectively.
The US LNG is expected to play a major role in South Korea’s future energy policies. South Korea is rapidly moving away from coal and nuclear power to natural gas-fired electricity generation. During this week, many other top South Korean companies such as LG, Samsung, Hyundai, and Doosan have signed the agreement for investments in the US’s respective sectors.
South Korea is America’s sixth-largest trade partner, worth US$112 billion, as per last financial year. But the US trade deficit with South Korea has gone up very high, touching almost $28 billion in 2016. The US is looking forward to bridging the gap with these new investments.