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Yomiuri Shimbun
26-05-2025
- Business
- Yomiuri Shimbun
Japan's Cooperation in Alaska LNG Development Project Emerges in Japan-U.S. Tariff Negotiations; But Industry Concerns Exist
Reuters file photo A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, on November 13, 2017. Japan's cooperation in the development of liquefied natural gas (LNG) in the U.S. state of Alaska has emerged as a bargaining chip in the ongoing Japan-U.S. tariff negotiations. While U.S. President Donald Trump is expecting Japan, South Korea and other countries to participate in the development project, doing so is expected to require over ¥6 trillion, prompting some major trading companies and energy companies to question the profitability of the project. The Yomiuri Shimbun Strong focus on U.S. side According to the Alaska Gasline Development Corp. (AGDC), which is responsible for the project, the plan is to lay a roughly 1,300-kilometer-long pipeline from gas fields in northern Alaska. Gas from the fields will be transported to the Pacific coast in southern Alaska, from which the gas will be exported to the rest of the world, and 20 million tons of gas are expected to be exported to Asia per year. At a Japan-U.S. summit in February, Japan agreed to work with the United States to expand imports of U.S. LNG. Trump in March said in an address to the U.S. Congress that Japan and South Korea wanted to partner with the United States on the project. In mid-May, Alaska Gov. Mike Dunleavy stated that they were discussing a broad range of issues with Japan, South Korea and other countries. The U.S. side has shown strong enthusiasm for the project. An international LNG conference is scheduled to take place in Alaska in early June, and officials from Japan, South Korea and Taiwan have been invited to it. Trump reportedly hopes that Japan and South Korea will express their willingness to participate in the development project at this conference. The project is estimated to cost as much as $44 billion (about ¥6 trillion). If the project has participants from Asia, which are potential importers of the LNG, this will help reduce the burden on the U.S. side. In addition, Trump places strong emphasis on the project apparently because LNG exports will help reduce the U.S. trade deficit. Harsh environment The issue of the Alaska LNG project may seem to have emerged out of nowhere. However, for officials in the energy industry, the project has been discussed for over two decades. Since the northern part of Alaska where the gas fields are located faces the ice-covered Arctic Ocean, it would be difficult to export gas directly from a port. If a pipeline is laid, it will enable the supply of LNG to southern urban areas through which the pipeline will run. AGDC aims to start production in 2031. However, the construction of the pipeline will need to be done in a harsh environment as it is supposed to pass over 800 rivers and through three mountain ranges, including Mt. Denali, or Mt. McKinley, which is North America's tallest mountain. 'I don't think construction can be completed by 2031,' said a major trading company executive. Some believe the construction costs could balloon to more than ¥10 trillion due to recent inflation. Kenichi Hori, president of Mitsui & Co., Ltd., said, 'It is necessary to thoroughly examine the economic potential and long-term sustainability of the entire project.' Geopolitical risks As LNG emits less carbon dioxide when burned than oil, Japan's Strategic Energy Plan positions it as a realistic fuel for the time being. However, its supply is often influenced by geopolitical risks. In Arctic LNG 2, an LNG project in Russia's Arctic Circle in which Mitsui & Co. and other companies are participating, LNG production has been suspended due to economic sanctions against Russia and there is no prospect of LNG being supplied to Japan. To diversify risk, major trading companies, power and gas companies, and others are working to diversify and expand their interests in Southeast Asia, Australia, the Middle East and North America. If the Alaska project becomes operational, LNG could be delivered to Japan in about a week, which is expected to help reduce the number of days required for delivery. Even so, there is deep-rooted concern regarding the project. 'If we end up buying more expensive energy, it will only result in the public having to bear a greater burden,' said a senior official of the energy industry. The government and related companies will have to consider this issue carefully.
Yahoo
23-05-2025
- Business
- Yahoo
U.S. Courting Asian Investors for $44 Billion Alaska LNG Project
The top U.S. energy officials will host on June 2 an event with officials from South Korea, Japan, and Taiwan to tout the $44-billion Alaska LNG project for which the United States is seeking Asian investors, sources with knowledge of the plans told Reuters on Friday. State firm Alaska Gasline Development Corporation (AGDC) seeks to advance the Alaska LNG project, designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. U.S. officials toured Asia earlier this year in search of potential Asian investors in the LNG project. The LNG export facility is strongly supported by the Trump Administration, which has been also pressing Japan and South Korea to buy more LNG as a way to reduce America's trade deficit with its Asian allies. U.S. Secretary of the Interior, Doug Burgum, and Energy Secretary Chris Wright will host the June 2 event in Alaska. However, the visit is unlikely to result in major investment deals for the Alaska LNG project, as it is not clear yet how senior the Asian officials will be, according to Reuters's sources. In March, Taiwan's state-held oil and gas company CPC Corporation signed a letter of intent to invest in Alaska LNG and buy LNG from the project as part of a move to bolster its gas supply and energy security. Despite the commitments to invest in the U.S., including in Alaska LNG, Taiwan was slapped with a now-halted 32% tariff. Taiwan wasn't spared from one of the highest now-suspended tariffs despite being the only early committed investor in the huge Alaska LNG project, while Japan and South Korea are hesitating. Taiwan is so far the only Asian country to have committed investments and backing to the Alaska LNG project despite the state of Alaska and the Trump Administration's weeks-long courting of investors from north Asia, such as Japan and South Korea. By Tsvetana Paraskova for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fox News
05-05-2025
- Business
- Fox News
President Trump's Alaska pipeline could fuel America's energy needs and his legacy
When President Donald J. Trump stood before a joint session of Congress earlier this year and declared Alaska LNG a top national priority, he sent a strong signal to the world that America would once again act boldly to unleash the full might of its energy potential. If his administration can follow through on that vision and continue to move at the speed that has so far defined his second term, the Alaska LNG pipeline will be one of the defining achievements of his presidency. Before the end of President Trump's second term, Alaska LNG — a project that was once seen as an improbable long shot — will be pumping energy out of the ground, supporting American consumers in Alaska, Alaska's crucial military bases and then our Asian allies in the Pacific. The proposed pipeline, stretching over 800 miles from the North Slope to the southern coast of Alaska is a strategic masterstroke. It reflects exactly what President Trump's administration is all about: prioritizing American jobs and strengthening our nation on the world stage. When operational, the Alaska Gasline Development Corporation (AGDC) estimates the pipeline could carry each day at 3.5 billion cubic feet per day. To put that in perspective, just this one project could produce nearly all the natural gas that Russia exports to the world. This is not just a theoretical pipe dream. Alaska LNG has already overcome the bureaucratic and legal red tape that is typically the most time-consuming part of the process, securing its permits and defeating every legal challenge. Alaska Governor Mike Dunleavy recently held talks in Taiwan, Thailand, South Korea, and Japan and has already begun to secure commitments from these potential customers. According to Governor Dunleavy, the goal is for the pipeline to be in place in two and a half years with gas flowing through it. As soon as the project is operational, Alaska LNG will be serving Alaskans. For too long, Alaska has sat on an ocean of energy potential without the infrastructure to realize its full value. The Alaska LNG pipeline will change that, bringing in billions of investment, tens of thousands of jobs, and much-needed revenue to a state that has been economically sidelined by D.C. bureaucrats and green agenda zealots. For rural communities who would otherwise be forced to rely on imported fuel, the pipeline promises real energy security with affordable and reliable power for families and businesses. But the benefits won't stop at the Alaskan border. While lowering global energy prices, this massive project will boost American exports and make a major dent in our trade deficit. Alaska LNG pipeline will give the United States a powerful new lever in global energy markets, particularly in the Asia-Pacific region. Our allies —Japan, South Korea, Taiwan —are all energy-hungry nations with a growing appetite for natural gas. Instead of relying on our being at the mercy of Russian and Middle Eastern exporters, they can look to the United States and Alaska. That dynamic will give the United States a strategic advantage in competition against China. For years, Beijing has used its dominance in critical industries and energy investments to bully smaller nations and manipulate global markets. The Alaska LNG pipeline is a direct counterpunch. By supplying reliable American energy to China's neighbors, we reduce their dependence on the CCP and strengthen the geopolitical balance in our favor. President Trump understands that Alaska's energy will strengthen our nation's leverage and security. At home, President Trump will not only lower energy prices but also secure his vision of energy independence. America will never be begging OPEC for oil or watching our gas prices skyrocket because of international disruptions again. The cynics and the doubters have long thrown cold water on the Alaska LNG project. But President Trump understands what our nation is capable of and can once again prove them wrong. If leaders in his administration, like Secretary of the Interior Doug Burgum, continue to prioritize this project, the Alaska LNG pipeline will be built and pumping before the end of his current term. That will not just be a win, but a major legacy achievement for the President. The Alaska LNG Project is the kind of big, bold project that only a leader like Trump could deliver. It is only appropriate that President Trump be there to preside over its groundbreaking before his term ends.
Japan Times
31-03-2025
- Business
- Japan Times
Alaska governor to brief Trump on Asia gas push as tariffs bite
Alaska's governor will brief U.S. President Donald Trump's administration next week on progress in securing Asian backing for a $44 billion natural gas export project, he said, part of Washington's broader push on trade and tariffs. Trump wants Japan, South Korea and Taiwan to join the project and Gov. Mike Dunleavy is winding up a trip through Asia where he has been seeking investors and long-term buyers. He is traveling with the heads of the state-run Alaska Gasline Development Corporation (AGDC) and development partner Glenfarne Group and has held talks in Taiwan, Thailand, South Korea and Japan. "Buying gas and then investing in America helps with the discussions that are happening at the federal level and at the national level," Dunleavy said in an interview in Tokyo. "I would like to talk with the president, but at least I'll be talking with some of the secretaries that are intimately focused on this project," he said. The delegation's visit coincides with renewed trade pressure from Washington. On Wednesday, Trump announced a 25% tariff on imported cars and light trucks starting April 3 — a threat to the auto sectors of Japan and South Korea. Dunleavy said he had not secured investment or purchase commitments in Japan or South Korea but would return home with a letter of intent from Taiwan to buy 6 million metric tons of liquefied natural gas (LNG) annually following two meetings with President Lai Ching-te. The project's target production capacity is 20 million tons per annum. "The desire to be linked to the United States for geopolitical purposes is strongest out of Taiwan by far," Brendan Duval, founder and CEO of Glenfarne, said. Alaska plans to transport natural gas from the state's remote north along a proposed $44 billion, 1,300 km pipeline to the south, where it will be liquefied and shipped to East Asia beginning in 2030. Construction for the LNG pipeline would begin in 2026 with gas flowing in 2028, and the conditioning plant and export facility completed in 2030, the governor's office said in an emailed statement earlier this month. Trump, who has pushed allies to buy U.S. energy while simultaneously threatening trade tariffs, asked Prime Minister Shigeru Ishiba in February to support the Alaskan plan. In a recent address to Congress, he said Japan and South Korea wanted to partner in a project he claims could inject trillions of dollars into the U.S. economy. Japanese energy companies, including Inpex, the country's largest oil and gas explorer, say they remain unconvinced about the project's viability. In Tokyo, the Alaskan delegation also met with Japan's Minister of Economy, Trade and Industry, Yoji Muto. Earlier in Seoul, they held talks with South Korean Trade Minister Ahn Duk-geun. Detailed project plans, including the front-end engineering design, are expected to be completed in the third quarter, with a final investment decision for the pipeline part of the project likely by the end of the year. That would pave the way for Asian buyers to commit to a project that, according to Glenfarne's Duval, will be able to deliver gas at a competitive price. U.S. investors will provide most of the financing for the pipeline, while any equity from Japan or other Asian buyers will likely be tied to offtake from the liquefaction plant that will prepare the gas for export, Duval said. "Some leadership out of Japan clearly is going to be helpful," he said.
Yahoo
30-03-2025
- Business
- Yahoo
Exclusive-Alaska governor to brief Trump on Asia gas push as tariffs bite
By Tim Kelly and Katya Golubkova TOKYO (Reuters) -Alaska's governor will brief U.S. President Donald Trump's administration next week on progress in securing Asian backing for a $44 billion natural gas export project, he told Reuters, part of Washington's broader push on trade and tariffs. Trump wants Japan, South Korea, and Taiwan to join the project and Governor Mike Dunleavy is winding up a trip through Asia where he has been seeking investors and long-term buyers. He is travelling with the heads of the state-run Alaska Gasline Development Corporation (AGDC) and development partner Glenfarne Group and has held talks in Taiwan, Thailand, South Korea, and Japan. "Buying gas and then investing in America helps with the discussions that are happening at the federal level and at the national level," Dunleavy told Reuters in an interview in Tokyo. "I would like to talk with the president, but at least I'll be talking with some of the secretaries that are intimately focused on this project," he told Reuters. The delegation's visit coincides with renewed trade pressure from Washington. On Wednesday, Trump announced a 25% tariff on imported cars and light trucks starting April 3 — a threat to the auto sectors of Japan and South Korea. Dunleavy said he had not secured investment or purchase commitments in Japan or South Korea but would return home with a letter of intent from Taiwan to buy 6 million metric tons of liquefied natural gas (LNG) annually following two meetings with President Lai Ching-te. The project's target production capacity is 20 million tons per annum. "The desire to be linked to the United States for geopolitical purposes is strongest out of Taiwan by far," Brendan Duval, founder and CEO of Glenfarne, told Reuters. Alaska plans to transport natural gas from the state's remote north along a proposed $44 billion, 1,300 km (800-mile) pipeline to the south, where it will be liquefied and shipped to East Asia beginning in 2030. Construction for the LNG pipeline would begin in 2026 with gas flowing in 2028, and the conditioning plant and export facility completed in 2030, the governor's office said in an emailed statement earlier this month. Trump, who has pushed allies to buy U.S. energy while simultaneously threatening trade tariffs, asked Japanese Prime Minister Shigeru Ishiba in February to support the Alaskan plan. In a recent address to Congress, he said Japan and South Korea wanted to partner in a project he claims could inject trillions of dollars into the U.S. economy. Japanese energy companies, including Inpex Corp, the country's largest oil and gas explorer, say they remain unconvinced about the project's viability. In Tokyo, the Alaskan delegation also met with Japan's Minister of Economy, Trade and Industry, Yoji Muto. Earlier in Seoul, they held talks with South Korean Trade Minister Ahn Duk-geun. Detailed project plans, including the front-end engineering design, are expected to be completed in the third quarter, with a final investment decision for the pipeline part of the project likely by the end of the year. That would pave the way for Asian buyers to commit to a project that, according to Glenfarne's Duval, will be able to deliver gas at a competitive price. U.S. investors will provide most of the financing for the pipeline, while any equity from Japan or other Asian buyers will likely be tied to offtake from the liquefaction plant that will prepare the gas for export, Duval said. "Some leadership out of Japan clearly is going to be helpful," he said. Sign in to access your portfolio
