WASHINGTON, Oct 2 (Reuters) – President Donald Trump said on Friday that a US trade deal with South Korea includes $8.4 billion for a project to pump gases into an aging oilfield to push out remaining crude.
“The Republic of Korea Deal keeps getting BETTER! 8.4 Billion Dollars for an enhanced Oil Recovery Project. Producing more Oil and Gas means American Energy Dominance and Energy Security in the World for the Future!” Trump wrote on Truth Social.
The technology, known as EOR, which often pumps the greenhouse gas carbon dioxide into oilfields, is backed by large oil companies but is opposed by many environmental groups that say it is not a climate solution as it can prolong dependence on petroleum.
The announcement is the latest in a series of economic and investment deals Trump is highlighting ahead of November’s midterm elections, as he seeks to reinforce his economic record amid voter concerns over the Iran war and high gasoline prices.
Trump unveiled plans on Wednesday for South Korea to invest $200 billion in US projects, but Seoul quickly suggested one key element, a $54 billion pipeline for an LNG project in Alaska, was not yet set in stone.
Trump said the investment would include the construction of eight large-scale nuclear power plants, a natural gas pipeline and a 6-gigawatt power generation facility in Texas.
The announcement amounted to the first set of major projects under a broader $350 billion strategic investment package South Korea made as part of a trade agreement with Washington last year. The package included $150 billion for shipbuilding.
The pipeline project could carry political significance in Alaska, where Republican Senator Dan Sullivan faces a competitive reelection race against Democrat Mary Peltola.
South Korea’s government, however, said the project would only go forward if certain commercial and legal conditions are met. The Alaska LNG project will be reviewed to assess its viability and compliance with legal procedures, Seoul’s industry ministry said.
(Reporting by Katharine Jackson; additional reporting by Timothy Gardner, editing by Michelle Nichols and Emelia Sithole-Matarise)
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