Alaska Agency Proposes Pressuring Japan to Fund LNG Project

The Alaska state development agency is aiming to encourage Japan to invest in a significant natural gas export project by connecting it to the long-standing security agreement between Japan and the United States.

The Alaska Industrial Development and Export Authority has pledged support for the Alaska LNG project, which has faced difficulties in securing the tens of billions of dollars required for the construction of the 800-mile pipeline and gas liquefaction facility that would enable North Slope gas to be exported to Japan and other Asian markets. However, the project’s high costs and construction challenges have prevented it from moving forward since its inception over a decade ago.

In a recent presentation to Alaska’s Senate Finance Committee dated Feb. 17, the authority indicated that President Donald Trump’s assertive trade policies have altered the economic landscape.

“We are now in a completely ‘transactional’ trade environment. ‘If X, then Y,’” the presentation stated. “For Japan, the ‘X’ represents a defense security agreement with the United States that remains unchanged, protection from China, and the avoidance of U.S. trade tariffs. If Japan desires ‘X,’ it must provide ‘Y.’ What is ‘Y’? ‘Y’ entails new Japanese investments in the United States, which Prime Minister [Shigeru] Ishiba noted would reach $1 trillion. Additionally, it includes increased LNG purchases from the U.S. and a joint venture associated with Alaskan oil and gas.”