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By Gabe Whisnant
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President Donald Trump on Wednesday announced a $54 billion investment in Alaska's long-delayed liquefied natural gas (LNG) project as part of a broader energy package, with the announcement coming less than five weeks before the midterm elections and amid Republican Senator Dan Sullivan's competitive bid for reelection.
According to information the White House provided to Newsweek, the investment will be part of a broader commitment from South Korea under the U.S.-Korea Trade and Investment Initiative. The administration says South Korea will commit $200 billion in investments tied to last year's trade agreement, including $54 billion for the Alaska LNG pipeline project.
Trump said South Korea would invest in a 6-gigawatt power generation facility in Texas and support the development of eight new large-scale nuclear power plants across the United States.
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Trump unveiled the investment during an Oval Office event Wednesday afternoon alongside senior administration officials and Alaska Republican political leaders, including Sullivan, Governor Mike Dunleavy and Representative Nick Begich.
"Today, President Trump will announce major energy infrastructure investments that deliver on his day one promises to unleash American energy, unlock Alaska's extraordinary resource potential, and accelerate America's nuclear energy renaissance," White House spokeswoman Taylor Rogers said in a statement to Newsweek. "Unlike the Democrats' energy subtraction policies, this President's energy dominance agenda continues to cement the United States as the energy capital of the world."
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Taking to Truth Social Wednesday night, Trump said in part that "We are turning Korea’s Investment commitments into HUGE Construction Projects, and tens of thousands of AMERICAN JOBS. These are massive Energy Projects, adding Power Capacity in the United States. This is new Construction, new Manufacturing, and GREAT Jobs for American Workers."
He added later that the "Projects announced today will help power us for Generations to come."
The investment announcement follows a similar White House event earlier this week, when Trump highlighted plans for a multibillion-dollar steel project in Iowa, another state featuring a closely watched Senate contest for a seat currently held by a Republican.
“He’s got my ear, and he’s had my ear for a long time on Alaska," Trump said Wednesday of Sullivan, a two-term Senator. The president added that "all these energy projects are all mine, and I got ’em done working with Dan Sullivan.”
Trump Says He'll 'Charge Them More' if South Korea Doesn't Sign Alaska Deal
However, statements from Seoul suggest South Korea has not yet committed to the project.
South Korean President Lee Jae Myung said Thursday that any investment in the Alaska LNG project remains contingent on further review. In a post on X, Lee said the proposal would move forward only if it is deemed commercially viable and complies with South Korean law.
"Among the U.S. investment projects announced by the United States, the Alaska LNG project will proceed to working level under the preconditions that (1) its commercial viability is confirmed and (2) it complies with the legal procedures of the Republic of Korea," Lee wrote.
Speaking to reporters Friday, Trump rejected suggestions that he had overstated South Korea's support for the project.
"I didn't jump the gun. They were there, and they were represented," Trump said before expressing surprise at Lee's comments. "They said they didn't sign on?"
Trump appeared to threaten economic consequences if South Korea does not move forward with the project.
"If they don't wanna do it, that's okay with me. I'll just charge them more," he said, later adding: "If they don't sign shortly, I'm gonna double it up."
Trump did not specify what costs he was referring to, but the remarks appeared to suggest potential tariff increases or other trade measures.
What Is Trump's $54B Alaska Investment?
The Alaska LNG project has been discussed for years but has struggled to secure the financing needed to move forward. The proposal centers on an 807-mile natural gas pipeline connecting Alaska's North Slope energy reserves to an export terminal in southern Alaska.
The administration says the project would transport about 3.9 billion cubic feet of natural gas per day and export up to 20 million metric tons of LNG annually to foreign markets, particularly in Asia.
The White House cast the investment as a direct result of the trade and strategic investment agreement reached with Seoul in 2025. Beyond the Alaska project, administration officials said South Korean capital will also flow into eight large-scale nuclear power plants and a 6-gigawatt power generation facility in Texas.
The administration says that the Alaska project would bolster U.S. energy production, strengthen ties with South Korea and other Asian allies, and reduce energy costs for Alaskans.
Despite renewed political support, the Alaska LNG project has faced opposition and legal challenges for years. Environmental groups including the Sierra Club and Center for Biological Diversity have challenged federal approvals since 2020, arguing the project would increase greenhouse gas emissions and threaten sensitive ecosystems.
Cooper Freeman, the Center for Biological Diversity's Alaska director told Newsweek, “From the start, the Alaska LNG project has been a messy jumble of missed promises and unrealistic fantasies. The only deliverable of this project so far has been to massively distract Alaska from the affordable, renewable energy transition we so desperately need.
He continued in an email response, "I haven’t seen any proof that this pipe dream can actually pay off. What we know for certain is that the project will create more fossil fuel emissions and accelerate the climate crisis."
Trump made the announcement at the White House Wednesday afternoon. The event also included Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick, Interior Secretary Doug Burgum and other officials involved in the administration's energy agenda.
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Dan Sullivan vs. Mary Peltola: What the Latest Polls Show
The announcement arrives amid growing political pressure on Republicans ahead of November's elections. Republicans currently hold the Senate majority, and Democrats need a net gain of four seats to take control of the chamber.
Democrats have targeted Alaska as one of several opportunities to gain Senate seats, with former Democratic Representative Mary Peltola mounting a serious challenge to Sullivan.
The most recent AARP poll, conducted September 8-11 among 800 likely voters, showed Peltola with a slight lead over Sullivan—46 percent to 41 percent. Under the state's ranked-choice system, Peltola would end up with 53 percent of the vote, the poll said.
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Overall, per RealClearPolling, the race appears to be a toss-up, with Peltola at 50.3 percent and Sullivan at 48 percent.
Prediction markets give a slightly different picture, with Peltola showing a stronger lead. As of Wednesday, Polymarket showed Peltola with a 73 percent chance of winning compared to Sullivan's 29 percent. Kalshi showed a 71-29 percent split in the Democratic Party's favor.
A recent AARP survey showed rising prices and affordability as the dominant issue for Alaska voters, with 42 percent putting it as their first or second most important issue when voting this November. Fifty-one percent of participants said they were worried about their personal financial situation.
Trump has increasingly acknowledged the challenges Republicans could face in holding both chambers of Congress after the November midterms, while arguing that the problem is not a lack of accomplishments but a failure to effectively communicate them to voters.
"I've done a very bad job of explaining," Trump said during a Hispanic Heritage Month event in the White House East Room, held before the administration's announcement of a major Alaska natural gas investment agreement.
The president said he plans to spend much of the next month campaigning ahead of the midterms. His initial stops, however, are set to include Texas, Alabama, Ohio and Nebraska, states that have traditionally favored Republicans in statewide and presidential elections.
Trump also touted his political influence, telling attendees that Republican candidates perform better when he is actively involved on the campaign trail.
"I hope you can believe that I'm running. They like to say, 'Oh, nobody wants him.' Well, everybody that has me wins," Trump said. "We lose 40% when I don't run. When I run, we have tremendous success."
Sullivan and Peltola Both Back Alaska LNG
Sullivan has been one of the most vocal and consistent champions of Alaska LNG for years, framing it as both an Alaska economic project and a strategic energy project for U.S. allies.
The Alaska Republican said Wednesday, “the sky is the limit when we get this project done.”
“Mr. President, this one is huge for Alaska,” Sullivan said, saying that he'd been working on it “relentlessly.”
Newsweek reached out to the Sullivan campaign via email Wednesday morning for comment on the LNG pipeline project.
While Sullivan is one of the pipeline's most prominent advocates, Peltola also sports the Alaska LNG project. During her tenure in the House, she criticized the Democratic Biden administration's pause on certain LNG export approvals and argued that the project should move forward.
Peltola has cited the pipeline's potential economic benefits for Alaska and, during her Senate campaign, included support for the Alaska LNG project as part of her energy platform.
“I am so proud of the bipartisan work that I’ve done from the Alaska State Legislature to the United States House of Representatives to bring an LNG pipeline from the North Slope closer to reality, and I will continue to champion the Alaska LNG project in the United States Senate so that we can create good paying Alaska jobs and drive down energy costs for families across the state," Peltola said in a statement shared with Newsweek. "Today’s announcement is great news for Alaska, and I appreciate President Trump's work to unleash Alaska energy. I look forward to continuing this bipartisan work with the President as Alaska’s next United States Senator.”
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.
Contact Newsweek editors on this story: Jason Lemon, Sam Wilson and Anna Commander
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