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South Korea hosts Alaska Governor and energy team amid talks of gas pipeline

Alaskan state officials, including the governor and energy officials, visited South Korea to discuss energy collaboration on Tuesday. This was in response to President Donald Trump's call for U.S. ally countries to join an stalled pipeline project.

The American Chamber of Commerce in Korea said that the Governor Mike Dunleavy delegation included officials from the Glanfarne Group, which is a partner in a project to transport natural gas from Alaska's remote northern region via a $44-billion pipeline, and the state agency for gas.

Dunleavy and South Korean Industry Minister Ahn duk-geun discussed energy issues including the Alaska LNG project and other commercial issues, according to a ministry statement.

The document did not mention any specific aspects of the project.

Dunleavy had met with Kim Dong-yeon, the Governor of Gyeonggi Province. This is South Korea's largest region, which surrounds Seoul, and has the highest population.

Kim said Alaska is a vital part of the global system for energy and expressed his hope that the U.S. State and South Korea can pursue mutually beneficial collaboration.

South Korea, which is energy-scarce, is the third largest LNG buyer in the world behind China and Japan. It also has a large petrochemical industry.

Dunleavy stated that Trump hoped the LNG talks would be beneficial to all parties and that an agreement wouldn't come at the expense of national interests of any allies.

Trump has tried to support the project by calling for South Korea, Japan and Taiwan as they are potential buyers of gas which would be transported via the pipeline of 1,300 km (800 miles).

South Korea has said that it will be actively involved in the discussions about this project.

South Korea is a major supplier of steel, automobiles, and batteries for electric vehicles to the United States. It has been preparing itself to face Trump's plan that will impose tariffs on countries with trade surpluses.

Trump has instructed his team to develop reciprocal tariff plans before early April. He has stated that the average tariff in South Korea is four times greater than the United States.

Seoul has refuted Trump's claim. South Korea's Trade Ministry said that the country's tariff rate for U.S. imported goods was 0.79%, as almost all import duties were eliminated under the first free trade agreement signed in 2007.

Dunleavy’s delegation is expected to remain in South Korea until Wednesday.

AMCHAM said that the Alaska representatives would also be meeting with leaders of major South Korean companies, including the SK, Hanwha, POSCO, and the state-owned gas corporation for discussions about key industrial sectors, including energy, infrastructure and advanced manufacturing. Reporting by Jack Kim and Tim Kelly, both in Seoul. Editing by Ed Davies.

(source: Reuters)