In a strategic move to bolster ties with the United States and mitigate potential trade tensions, Japan is contemplating support for a $44 billion gas pipeline project in Alaska. This initiative, championed by U.S. President Donald Trump, aims to connect Alaska’s northern gas fields to a southern port, facilitating the export of liquefied natural gas (LNG) to Asian markets.
Japanese officials anticipate that President Trump may highlight the significance of this project during his upcoming meeting with Prime Minister Shigeru Ishiba in Washington. While Japan harbors reservations about the pipeline’s feasibility—primarily due to its substantial costs compared to alternative energy sources—it remains open to exploring the proposal if prompted by the U.S. administration.
This potential collaboration is part of Japan’s broader strategy to address a $56 billion trade deficit with the U.S. and avert the imposition of tariffs. Other measures under consideration include increasing imports of American LNG, boosting defense expenditures, and enhancing manufacturing investments within the United States.
Despite Japan’s current ample access to LNG—trading approximately 38 million tonnes last year, exceeding half of its domestic consumption—the Alaska pipeline presents an opportunity to diversify energy imports. By reducing reliance on suppliers like Russia, which currently provides about 10% of Japan’s gas imports, Japan can enhance its energy security.
Prime Minister Ishiba has emphasized the importance of a stable energy supply from the U.S., stating in parliament, “There are things that we should request from the U.S. in terms of stable energy supply.” However, he did not provide specific details or directly reference the Alaska project.
It’s important to note that any commitment from Japan regarding the Alaska LNG project would require favorable terms, including competitive pricing and the flexibility for Japanese buyers to resell purchased LNG. Such agreements would necessitate thorough negotiations and assurances to ensure mutual benefits.
The Alaska pipeline project has already secured necessary approvals from U.S. authorities, despite facing opposition from environmental groups. Recently, the Alaska Gasline Development Corporation (AGDC), the state-owned entity overseeing the project, announced a partnership with developer Glenfarne to advance the pipeline’s development.
In summary, Japan’s consideration of support for the Alaska gas pipeline underscores its efforts to strengthen U.S. relations, diversify energy sources, and proactively address trade imbalances. The outcome of the forthcoming discussions between President Trump and Prime Minister Ishiba will be pivotal in determining the future of this significant energy collaboration.
