Japan is considering backing a $44 billion natural gas pipeline in Alaska to curry favor with US President Donald Trump and avoid potential trade frictions, three officials familiar with the matter told Reuters.
Officials in Tokyo expect Trump to raise the project, which he has said is key to US prosperity and security, when he meets with Japanese Prime Minister Shigeru Ishiba for the first time in Washington next week.
Japan has doubts about the viability of the 800-mile pipeline, which would connect fields in northern Alaska to a southern port where the gas would be liquefied and shipped to Asian customers, because of the total cost of the gas compared to other sources. But officials said they were prepared to offer to explore a deal if requested.
Tokyo could include such a commitment among other concessions, such as buying more US gas and increasing defense spending and manufacturing investment in the US to reduce the $56 billion bilateral trade deficit and stave off the threat of tariffs, one of the officials said.
The White House did not immediately respond to a request for comment on the meeting. Japan’s Foreign Ministry said it was premature to discuss the issue.
Details of Japan’s possible interest in the Alaska project had not previously been reported. According to Reuters, the officials spoke on condition of anonymity because they were not authorized to speak to the media.
Promise to unlock Alaska’s resource potential
Among the decrees Trump signed when he took office on 20 January was one promising to unlock Alaska’s resource potential, “including the sale and transport of Alaska LNG to other parts of the United States and allied countries in the Pacific region.”
Trump described the gas project as a win for Alaska and US allies in Asia seeking a stable source of energy. But Japan already has ample access to LNG, and its companies traded about 38 million tonnes last year, more than half of its domestic consumption.
Still, the Alaska pipeline could help Japan diversify its supplies from sources such as Russia and the Middle East, where it realizes about a tenth of its gas imports.
Ishiba told parliament on Friday that Japan needs to reduce its dependence on fossil fuels, saying “there are things we need to demand from the United States in terms of stable energy supply.” He did not elaborate on this and did not mention the Alaska project.
Officials cautioned that Ishiba would not be able to make firm commitments on LNG, including investing in the Alaska project, when he meets with Trump. A fourth official said any deal must offer reasonable pricing and flexibility, including allowing Japanese buyers to resell the LNG they buy.
Efforts to bond with Trump
Since returning to the White House, Mr Trump has spoken of a series of tariffs on foreign goods but has said little about his approach to economic and security relations with Japan. But the issue has dominated political discourse in Japan, a key US ally and largest foreign investor, which was shaken by Trump’s tariffs on steel imports during his first term and his demand that Tokyo pay more to host American troops.
Media attention in Tokyo has focused on whether Ishiba, who became prime minister last year and heads a minority government, can replicate the bond with Trump that former Japanese leader Shinzo Abe forged during his first term.
Abe, who was assassinated in 2022, was the first foreign leader to meet Trump after his 2016 election victory, and the two became “close confidants” and golfing partners.
The Ishiba administration, which has no such acquaintance with Trump’s inner circle, has sought advice from US lawmakers and policy experts with ties to both Japan and Trump. These include Tennessee Senator Bill Hagerty, the former US ambassador to Tokyo, and Kenneth Weinstein, Japan director of the Hudson Institute, a conservative think tank.
Weinstein told Reuters that he encouraged Japan to deepen its energy partnerships with the United States and that the Alaska project requires serious consideration. Hagerty’s office did not respond to questions.
Tokyo-based businessman Ado Machida, who served on Trump’s transition team after his 2016 election victory, said Japan’s offer to buy more LNG and support the Alaska LNG pipeline would be “probably the easiest” way to win Trump.
“Trump will want to know what Japan will do for him,” Machida said, adding that he had spoken to Japanese government officials about the offer.
State-owned banks such as the Japan Bank for International Cooperation (JBIC) could provide financing for the Alaska project to trading firms such as Mitsubishi Corp. and Mitsui & Co., which Japan relies on to secure its offshore oil, gas and coal reserves, one of the officials said.
In 2022, Mitsubishi reached an agreement with Alaska Gasline Development Corporation (AGDC), the state-owned company overseeing the LNG proposal, to assess the feasibility of producing ammonia there. Mitsubishi did not commit to the project beyond the evaluation.
Mitsubishi and Mitsui declined to comment on potential investments and discussions related to the Alaska LNG project. JBIC said it would consider providing support on a case-by-case basis, taking into account factors such as any participation by Japanese companies.
A spokesperson for AGDC told Reuters that it had held discussions with Japanese energy leaders about the project but gave no details.
The project, first approved during Trump’s previous term, received authorization from the Federal Energy Regulatory Commission in 2020 and final regulatory approval in 2022, despite opposition from environmental groups.
This month, AGDC announced that it had signed an agreement with developer Glenfarne to move the pipeline forward.