According to information released by Bloomberg, Japan, South Korea, and Taiwan plan to invest in a liquefied natural gas (LNG) export project in Alaska, with a total cost of $44 billion. This project has received support from U.S. President Donald Trump.
This is reported by Business • Media
Asian countries, from South Korea to Indonesia, are intensifying efforts to secure LNG purchase agreements from the U.S. They hope to mitigate the negative impact of significant “reciprocal” tariffs imposed by the Trump administration. This decision aims to facilitate trade with the world’s largest economy.
Japan’s Doubts About the Pipeline
Despite interest in the project, Japan expresses certain doubts regarding the feasibility of the 800-mile pipeline that would connect fields in northern Alaska to the southern port where the gas will be liquefied. The main reason is the high cost of gas compared to other energy sources. However, despite this, Japan is willing to consider the possibility of entering into an agreement.
Diversification of Supplies
The pipeline in Alaska could become an important element in Japan’s strategy to diversify its gas supplies. Currently, about 10% of the country’s gas imports come from Russia and the Middle East, which are considered more risky sources. The project could allow Japan to reduce this dependency.