Japan Does Not Believe Gas Production in Alaska Will Begin in 2031
Donald Trump is encouraging Asian countries, including Japan, to participate in the construction of an LNG plant in Alaska, under the pretext of reducing the trade deficit. However, Japanese companies are skeptical about the profitability of this project, which is estimated to cost at least 44 billion US dollars, according to Yomiuri.
The greatest concerns are associated with the need to build a 1,300-kilometer gas pipeline from the gas fields in the north of the state to a port in the south.
In addition, the head of one of Japan’s energy companies believes that the United States is being overly optimistic in naming 2031 as the start date for gas production for the Alaska LNG plant. Japanese business representatives also point out that the total cost of the planned plant and pipeline could rise to as much as 70 billion US dollars.
At the same time, the publication notes that it is in Tokyo’s interest to diversify its energy import geography, due to geopolitical risks. One such risk includes US sanctions, which have blocked Japan from receiving liquefied methane from the Russian Arctic LNG 2 plant.
The journal Oil and Capital (Neft i Kapital) recalls that Trump is urging Japanese companies to finance the Alaska LNG project by claiming that increased imports to Japan will help balance the trade relationship between the two countries, which in turn would protect Japan from the imposition of punitive import tariffs.
