A US trade agreement with South Korea now includes $8.4 billion for an oil recovery project, President Donald Trump announced on Friday.
“The Republic of Korea Agreement continues to improve: 8.4 billion dollars for an improved oil recovery project. Increased oil and gas production equals future global energy security and American energy dominance! Trump posted on Truth Social.
The announcement is the most recent in a string of business and investment agreements that Trump is showcasing in advance of the midterm elections in November in an effort to strengthen his economic record in the face of voter concerns about the Iran War and rising gas costs.
Trump outlined plans on Wednesday for South Korea to invest around $200 billion in US projects, but Seoul swiftly suggested one important part, a $54 billion pipeline for an LNG project in Alaska, was not yet set in stone.
Eight massive nuclear power plants, a natural gas pipeline, and a six-gigawatt power plant in Texas would all be built as part of the investment, according to Trump.
As part of a larger $350 billion strategic investment package that South Korea signed as part of a trade deal with Washington last year, the White House’s statement represented the first group of significant projects.
$200 billion for strategic investments and $150 billion for shipbuilding were included in the plan.
In Alaska, where Republican Senator Dan Sullivan is running for reelection against Democrat Mary Peltola, the pipeline project may have political ramifications.
Sullivan was present during the announcement on Wednesday.
However, the government of South Korea stated that the pipeline project would only proceed if specific legal and commercial requirements were fulfilled.
According to a statement from Seoul’s industry ministry, the Alaska LNG project would be examined to determine its commercial viability and adherence to legal requirements.
