The Trump administration convinced that Alaska LNG will find investors despite the cost

The Trump administration is confident that the huge wet natural gas project in Alaska will find investors despite its enormous cost.

President Donald Trump pushed Alaska LNG As a national priority since he took office. Alaska has already spent years in an attempt to build a 800 -mile pipeline from the northern slope over the Arctic circle south to the cooking entrance, where the gas will be cooled and shipped to the American allies in Asia.

But Alaska LNG has never ended in the ground due to the price of the strategy, which is more than $ 40 billion. Trump prompted Japan and South Korea in particular to invest in the project, and threaten them with high tariffs if they did not provide commercial deals that suit it.

“If you get trade for gas for gas, the financing is clear and direct,” Energy Minister Chris Wright told CNBC Brian Sullivan in Broadcast Bay. Alaska. “There (there) countries all over the world are looking to reduce their trade deficit with the United States, and of course a very easy way to do this is to buy more American energy,” said Wright.

Energy analysts, however, are skeptical of the project. Alexa LNG, Alex Monton, Director of International LNG Research in Rabidan Energy, said in April that Alaska LNG has “no clear commercial logic.”

“If this was the case, he would have received more support than it was until now, and this project was in the planning council for decades literally,” Monton said.

Support the Ministry of Defense

Wright said the project will be built on stages and initially served the local demand in Alaska, which faces a decrease in natural gas supplies at the Cook entrance. Interior Minister Doug Burgum said that the Ministry of Defense is ready to support the project with its resources.

“They are ready to sign the infiltration agreement from this pipeline to obtain gas to our important strategic rules throughout Alaska,” Burgum said of the Pentagon in an interview with CNBC in PRUDHOE Bay.

Burgum said that Alaska LNG, if completed, will provide us with natural gas to Japan in about eight days, compared to about 24 days for the exports of the American Gulf coast that pass through the crowded Panama channel. The Minister of the Interior said he would avoid the disputed water in the South China Sea that liquefied natural gas exports from the Middle East are going through.

Wright said that potential Asian investors had questions about the timeline and logistics in Alaska LNG. Wright said that the pipeline could start delivering liquefied natural gas to South Alaska in 2028 or 2029, when exports to Asia began at some point in the early thirties.

Glenfarne Group, the main developer of the project, Tell CNBC in April The final investment decision is expected to be during the next six to 12 months on the leg of the proposed pipeline that runs from the northern slope to the marina. Glenfarne is a developer, owner and operator of energy infrastructure in New York City and Houston.