From large-scale nuclear power plants to Alaska LNG… Companies remain 'cautious' amid U.S. investment opportunities

As U.S. President Donald Trump announced South Korea's plans for investment in the United States, industry expectations are rising that business opportunities for Korean companies may expand. However, given the discrepancy between the U.S. side's announcement and the South Korean government's stance regarding the Alaska LNG (Liquefied Natural Gas) project, a mood of waiting to see how things develop is also being felt.

According to industry sources on the 1st, the POSCO Group is mentioned as potentially participating in the business, given that it has already been pursuing cooperation with developers regarding the Alaska LNG project. Previously, POSCO International signed a Heads of Agreement (HOA) for a strategic partnership with Glenfarne, the developer of the Alaska LNG project. Under this agreement, POSCO International agreed to purchase 1 million tons (t) of LNG annually on a Free On Board (FOB) basis for 20 years. The agreement also included provisions for POSCO to supply steel materials for the installation of pipelines required for the Alaska LNG project.

Benefits are expected as it can be linked with the POSCO Group's existing businesses. POSCO International is equipped with LNG trading, import terminals, and dedicated vessels, meaning that if it secures Alaskan LNG, it could connect not only to domestic imports but also to trading businesses targeting the Northeast Asia market. Additionally, demand for POSCO's high-value-added energy steel materials, such as high-strength and low-temperature toughness, is expected given the need to construct long-distance pipelines in Alaska's harsh cold environment.

The view among relevant industry sectors is that it remains to be seen whether such cooperation will lead to actual investment and contract wins. While Alaskan LNG has the advantage of being geographically close to Asian markets, there is the burden of having to newly construct large-scale infrastructure such as long-distance pipelines and liquefaction plants. Furthermore, the fact that the South Korean government has stated that its decision on whether to invest in the Alaska LNG project has not yet been made is also a variable.

A business source said, "From the POSCO Group's perspective, they will have no choice but to watch the government's official stance and the progress of the project," adding, "Since they have cooperated with developers previously, there may be opportunities for participation if the project becomes concrete, but it is difficult to say definitively at this point."

In the nuclear power sector, Doosan Enerbility's business opportunities could expand. Doosan Enerbility possesses manufacturing capabilities for major nuclear power plant components such as reactors, steam generators, and turbine generators. In particular, the inclusion of two Korean-type APR1400 nuclear reactors is cited as a strength, allowing entry into the United States, the birthplace of the nuclear industry, to secure construction and operation track records. Additionally, the government is pushing for Korea Electric Power Corporation, HanSuwon, and private companies to acquire a 5-10% stake in Westinghouse; in this case, Korean companies could also aim for participation in construction and equipment supply chains.

Nevertheless, Doosan Enerbility remains cautious as investment in the construction of eight U.S. nuclear reactors has not all been finalized. The U.S. and South Korea plan to decide on final investment after concretizing future site locations, construction schedules, project structures, and commercial conditions, and assessing the commercial rationality of individual projects. Another business source added, "The eight nuclear reactors are a massive-scale project compared to previous cases such as the Czech Republic (two reactors)," while noting, "Since specific project structures or investment methods have not yet been revealed, it will be difficult for companies to immediately present business plans or stances."