The United States is advancing discussions with Asian nations about increasing American liquefied natural gas (LNG) exports, with particular focus on reviving a long-proposed Alaska gas project. During a recent lunch meeting, President Donald Trump and energy secretary Doug Burgum discussed the potential $44 billion Alaska LNG project with Japanese Premier Shigeru Ishiba.
According to officials familiar with the closed-door talks, the U.S. administration presented the venture as an opportunity for Japan to diversify its energy sources and address trade imbalances. Ishiba expressed interest in Japanese participation, though Japan’s official statement did not mention the project.
The U.S. strategy involves strengthening economic ties with East Asian allies through increased American fossil fuel exports, particularly LNG. This approach addresses regional concerns about trade tariffs and maritime security for energy shipments, based on interviews with current and former U.S. and Asian officials.
Japan, as the world’s second-largest LNG buyer, holds a crucial position in this strategy. The country currently sources approximately 10% of its LNG from the United States, matching proportions from Russia and the Middle East, while Australia provides about 40%. According to Hiroshi Hashimoto from the Institute of Energy Economics, Japan, U.S. LNG imports could increase to 20% of Japan’s total within five to ten years.
The Alaska project faces significant challenges, including high costs and difficult terrain for the proposed 800-mile pipeline. However, project developers are seeking investment from companies like Inpex, a Japanese government-backed oil and gas exploration firm. Inpex has declined to comment on potential involvement.
Other Asian nations are considering increased U.S. energy purchases. India’s Prime Minister Narendra Modi discussed gas procurement during a recent meeting with Trump. Taiwan is exploring additional U.S. energy imports, including Alaska LNG. South Korean officials indicated interest in investing in American energy projects, including the Alaska venture.
Current U.S. LNG exports to Japan primarily ship from the Gulf of Mexico via the Panama Canal or around Africa. The U.S. west coast currently lacks LNG export terminals, though Sempra’s Costa Azul project in Mexico, supplied by U.S. gas, is expected to begin operations next year. Of the 119.8 billion cubic meters of LNG exported by the U.S. last year, over one-third went to Asian markets.
U.S. Senator Bill Hagerty, former ambassador to Tokyo, envisions Japan becoming a key distribution hub for U.S.-origin LNG, suggesting this could strengthen both economic and security relationships between the nations. In a recent joint statement with U.S. Secretary of State Marco Rubio, Japanese and South Korean foreign ministers agreed to enhance energy security through American LNG supplies.
White House National Security Spokesman Brian Hughes emphasized America’s clean LNG production and expressed hope for increased Japanese purchases of U.S. oil and gas. Japan’s trade minister plans to visit Washington to discuss LNG purchases and seek tariff exemptions, according to Japanese media reports.
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