Japan Plans to Support Alaska Natural Gas Project to Strengthen Japan-US Relations

Japanese officials have disclosed that the government is considering providing support and other concessions for a $44 billion Alaska natural gas pipeline project in order to strengthen the relationship with the United States.

According to sources cited by Reuters, Japanese officials anticipate that Trump may bring up this project for the first time when he meets with Japanese Prime Minister Shizo Abely in Washington next week, as he has stated that the project is crucial for the prosperity and security of the United States.

The 800-mile pipeline is designed to connect gas fields in northern Alaska with ports in the south, where the natural gas will be liquefied and transported to Asian customers. While Japan has expressed skepticism about the feasibility of the proposed pipeline, officials have indicated that they would be willing to consider reaching an agreement if the U.S. makes the request.

Sources say Japan is also considering other concessions, such as purchasing more American natural gas, increasing defense spending, and investing in manufacturing in the U.S. to reduce the bilateral trade deficit of $56 billion and avoid being subjected to tariffs by the U.S.

An official mentioned that Japan’s state-owned banks, including the Japan Bank for International Cooperation (JBIC), could provide financing for the Alaska project, supporting trading companies like Mitsubishi Corporation and Mitsui & Co., which rely on overseas oil, natural gas, and coal reserves.

In an executive order signed on January 20th during his inauguration, Trump pledged to unlock Alaska’s resource potential, including “selling and transporting liquefied natural gas from Alaska to other regions of the U.S. and Pacific region allies.”

Trump views this natural gas project as a victory for Alaska and Asian allies seeking stable energy sources. However, Japan already has sufficient liquefied natural gas, having purchased about 38 million tons last year, exceeding half of its domestic consumption.

Nevertheless, the Alaska pipeline could help Japan diversify its supply, reducing dependence on higher-risk sources like Russia, which accounts for about one-tenth of its natural gas imports.

Trump has proposed a series of tariffs against foreign goods, but has revealed little about his views on Japan’s economic and security relations. However, this topic has dominated political discussions in Japan.

Japan is a key ally and major foreign investor of the United States. During his first term, Trump imposed tariffs on steel imports and requested Japan to pay more for hosting U.S. troops, causing unease in Japan.

The focus of attention in Tokyo media is whether Prime Minister Shizo Abe, leading a minority government, can replicate the close relationship established by former Prime Minister Shinzo Abe during Trump’s first term.

Abe was assassinated in 2022, becoming the first foreign leader to meet Trump after his election in 2016, and the two quickly became friends and golfing buddies.

Due to a lack of familiar relationships within Trump’s inner circle, Prime Minister Shizo’s government is seeking consultations with U.S. lawmakers and policy experts who have connections to both Japan and Trump.

Japanese businessman Yasumichi Machida served on Trump’s transition team after his election in 2016. He suggested that Japan’s proposal to purchase more liquefied natural gas and support the Alaska pipeline could be the “easiest” way to garner Trump’s support.

(This article referenced reports from Reuters)