President Donald Trump said the US and Japan are close to a deal to jointly export liquefied natural gas from Alaska, a potential boost for a long-delayed project that’s struggled to gain traction.Japan is “forming a joint venture with us in Alaska for the LNG,” Trump told lawmakers in Washington. “They’re all set to make that deal now.” The president didn’t provide further details on the Alaska venture, however, and it wasn’t immediately clear whether the plans represented a handshake agreement or something more formal.
The comments follow his announcement that the US reached a trade deal with Japan, which Trump said will see the Asian nation also commit to $550 billion worth of investments.
One of the beneficiaries of any US-Japan trade deal could be the $44 billion Alaska LNG export project, which has been proposed in various forms for decades but has not managed to secure binding long-term contracts and investments. Japanese Prime Minister Shigeru Ishiba said in April that it should be included in a trade package with the US.It also isn’t certain that any agreement between the US and Japan will be enough for Alaska LNG to move forward, especially as the project still lacks concrete sales agreements. Unlike similar facilities on the US Gulf Coast, this one would be massive in scale, requiring the construction of an 800-mile (1,287 kilometer) pipeline across the state.
The comments follow his announcement that the US reached a trade deal with Japan, which Trump said will see the Asian nation also commit to $550 billion worth of investments.
One of the beneficiaries of any US-Japan trade deal could be the $44 billion Alaska LNG export project, which has been proposed in various forms for decades but has not managed to secure binding long-term contracts and investments. Japanese Prime Minister Shigeru Ishiba said in April that it should be included in a trade package with the US.It also isn’t certain that any agreement between the US and Japan will be enough for Alaska LNG to move forward, especially as the project still lacks concrete sales agreements. Unlike similar facilities on the US Gulf Coast, this one would be massive in scale, requiring the construction of an 800-mile (1,287 kilometer) pipeline across the state.
Trump administration officials have encouraged investment from Asian allies in the proposed Alaska LNG venture, which has been repeatedly touted by the president. This includes pressing representatives from Japan, South Korea and Taiwan on the matter during a June trip to the Alaska. Japan was the world’s largest LNG buyer after China last year.
White House spokespeople and Glenfarne Group, the developer of the Alaska LNG project, didn’t immediately respond to requests for comment. An official at Japan’s trade ministry said the country continues to have interest in LNG from Alaska.
