Japan may be open to supporting a $44-billion gas pipeline and LNG export project in Alaska to avoid potential tariffs from President Trump, Reuters reported on Friday, citing sources in Tokyo.
As the world’s second-largest LNG importer, Japan—along with other U.S. trade partners in Asia—is exploring ways to increase LNG and energy imports from the United States.
Since winning the U.S. presidential election in November, Trump has warned of tariffs on countries with large trade deficits unless they boost purchases of American energy products.
JERA, Japan’s largest LNG buyer, is already planning to increase its LNG imports from the United States to diversify its supply portfolio, a senior executive told Reuters last week.
According to Reuters’ sources, Trump may discuss the Alaska LNG project with Japanese Prime Minister Shigeru Ishiba in a meeting expected early next month. Tokyo is reportedly prepared to consider backing the project and committing to additional U.S. LNG purchases if requested.
On his first day in office, Trump issued an executive order prioritizing the development of Alaska’s vast natural gas resources, including expediting permits for the Alaska LNG Project. The order emphasized the economic and national security benefits of such development.
The Alaska Gasline Development Corporation (AGDC), a state-owned entity, is spearheading the Alaska LNG project to bring North Slope natural gas to Alaskans and export LNG to U.S. allies in the Pacific. The project, originally authorized under the Trump administration in 2020 and reauthorized under the Biden administration in 2022, is the only federally approved LNG export facility on the U.S. West Coast. Its strategic location allows for direct, canal-free shipments to Asian markets through uncontested waters, AGDC states.