The leader of Japan’s gas industry association stated on Wednesday that while increased imports of liquefied natural gas (LNG) from the United States would undoubtedly bolster Japan’s energy security and supply stability, it is imperative that these imports are conducted in a way that is mutually beneficial for both countries.
US President Donald Trump’s administration is actively promoting the sale of energy resources, particularly LNG, to Asian allies.
This strategy aligns with the administration’s “America First” energy policy, which aims to boost domestic energy production and exports.
Last month, Japanese Prime Minister Shigeru Ishiba met with Trump to discuss the Alaska LNG project.
Alaska project
The project intends to transport 20 million tons of natural gas per year from Alaska’s remote north through an 800-mile pipeline, costing $44 billion.
The gas would then be shipped to Japan, South Korea, and Taiwan.
“Although it is not limited to Alaska, we can enhance Japan’s stable energy supply and security by boosting LNG procurement from the U.S.,” Japan Gas Association Chairman Takeshi Uchida told a news conference on Wednesday, according to a Reuters report.
He said:
However, we need to proceed in a way that is beneficial to both sides.
The Alaska LNG project is anticipated to exceed 6 trillion yen ($40 billion), double the cost of traditional LNG development, according to Uchida, chairman of Tokyo Gas, Japan’s largest city gas provider.
“To make it profitable, careful consideration is essential,” he said.
No communication from Japanese government
Uchida stated that the Japanese government, the second-largest LNG buyer globally after China, has not reached out to gas companies regarding increased purchases of LNG from the United States.
Uchida expressed concerns that additional tariffs, including retaliatory and reciprocal measures, could weaken the global economy and trigger a downturn.
He made these remarks in response to questions about the Trump administration’s tariffs.
He cautioned that a decrease in Japanese exports to the United States, such as automobiles and other products, could lead to a decline in domestic production.
This decline may result in reduced energy consumption and other unintended consequences.
Trump’s tactics
Simultaneously, Trump has been employing trade tariffs as a tool to pressure trading partners, including China and the European Union.
This dual approach of energy diplomacy and tariff threats has had significant implications for Alaska’s LNG ambitions.
The state has vast natural gas reserves, but projects to export LNG have been stalled for years due to high costs and regulatory hurdles.
However, Trump’s policies have injected new momentum into these projects.
The prospect of increased LNG exports to Asian markets, coupled with the administration’s support for streamlining regulatory processes, has revived interest in Alaskan LNG.
The Trump administration’s energy strategy is multifaceted.
It includes opening up federal lands and waters for energy exploration and production, rolling back environmental regulations, and promoting the export of fossil fuels.
This strategy has been met with both support and opposition.
Proponents argue that it boosts the American economy and reduces dependence on foreign energy sources. Critics, however, raise concerns about the environmental impact of increased fossil fuel production and the potential for trade conflicts.
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