South Korea is adopting a conservative approach to the long-planned Alaska liquefied natural gas project despite Donald Trump advertising it as part of a significant $200 billion investment package in the US.

On Wednesday, Trump said that the two countries had decided to collaborate on the $50 billion project but South Korean President Lee Jae Myung pushed back, adding that South Korea’s engagement could be contingent upon its economic viability and statutory adherence.

According to the Alaska Gasline Development Corporation, the Alaska LNG project seeks to transport liquefied natural gas across an 800-mile pipeline from Prudhoe Bay on Alaska’s North Slope to an LNG facility in the south.

Head of business intelligence for Asia Pacific at Poten&Partner, Kit Ling Wong said: “The economics of Alaska LNG is expensive given the long pipeline versus other LNG projects.”

“It will not be the cheapest supply for South Korea.”

Shipping LnG from Niskiski to South Korea would take seven to nine days compared to around 20 to 30 days from the US Gulf Coast. However, for South Korean buyers, the significant question is whether the shorter route can touch down into a competitive LNG price with alternatives such as LNG Canada, the US Gulf Coast, Kpler’s Katayama said.

South Korea also has to weigh its geopolitical and economic ties with the US against the project’s financial viability. The ultimate test will be the total acquisition cost of Alaska LNG after accounting for pipeline, financing, liquefaction, taxation and shipping costs for the majority of South Korean buyers and investors.

Nonetheless, additional US government support, including tax incentives and financial assistance would also be significant along with opportunities for South Korean companies to participate in the project’s construction and engineering, moving beyond the role of traditional LNG consumers.