Japan is considering offering support for a $44 billion gas pipeline project in Alaska as part of efforts to strengthen ties with U.S. President Donald Trump and mitigate potential trade tensions, according to Reuters.
The proposed 800-mile pipeline would link gas fields in northern Alaska to a southern port, where the gas would be liquefied and shipped to Asian markets. The project, which Trump has described as crucial for U.S. prosperity and security, is expected to be discussed during an upcoming meeting between Trump and Japanese Prime Minister Shigeru Ishiba in Washington.
Japan’s potential support for the Alaska LNG pipeline could be part of broader concessions aimed at reducing the $56 billion bilateral trade deficit with the U.S. These concessions may include increased purchases of U.S. natural gas, higher defense spending, and expanded manufacturing investments in the U.S.
The Alaska pipeline could help Japan diversify its energy supplies, reducing dependence on Russia and the Middle East.
The project, which received federal approval in 2020 and final legal clearance in 2022, has faced opposition from environmental groups.
Recently, the Alaska Gasline Development Corporation (AGDC), the state-owned company overseeing the project, entered into an agreement with developer Glenfarne to advance the pipeline. Japanese state banks, such as the Japan Bank for International Cooperation (JBIC), could provide financing for the project, with trading firms like Mitsubishi Corp and Mitsui & Co potentially playing a role in securing resources. In 2022, Mitsubishi signed an agreement with AGDC to assess the feasibility of producing ammonia in Alaska, though it has not committed further to the project.