Officials in the United States are encouraging Japan and South Korea to formally commit to a $44 billion natural gas project in Alaska, known as Alaska L.N.G., within the coming weeks.
This initiative is a key component of the U.S. energy strategy under President Trump, aiming to transport liquefied natural gas from northern Alaska to Asian markets. The project's viability depends on securing support from major regional buyers of liquefied natural gas.
A group advising President Trump on domestic energy production, the National Energy Dominance Council, is reportedly working to organize a summit in Alaska on June 2, involving officials from the trade ministries of Japan and South Korea, according to sources familiar with the discussions.
The goal for proponents at the summit is to announce signed letters of intent from Japan and South Korea to invest in or purchase gas from Alaska L.N.G. Recently, Taiwan signed a similar letter of intent to buy gas from the project.
Neither the White House nor the trade ministries of Japan and South Korea responded to requests for comment regarding the initiative.
Initially proposed over a decade ago, Alaska L.N.G. has been viewed by many in the energy sector as a challenging endeavor. Nevertheless, it plays a significant role in President Trump’s attempts to transform the U.S. energy landscape and promote fossil fuel development.
The project involves constructing an 800-mile pipeline from gas fields north of the Arctic Circle to southern Alaska, where the gas will be liquefied for shipment to Asia. This transportation method is expected to be more cost-effective and efficient for Asian countries compared to traditional sources from Australia, the Middle East, and the Gulf Coast of the United States.
However, major Asian buyers, including Japan, have historically expressed hesitance toward the Alaska L.N.G. project due to its high costs and uncertainty about its realization.
On his first day in office, President Trump signed an executive order aimed at maximizing Alaska's energy potential, including the proposed pipeline.
Japan, South Korea, and Taiwan are facing potential double-digit tariffs imposed by the Trump administration on several U.S. trading partners. Economists warn that the anticipated tariffs could hinder economic growth if enforced after their pause until early July.
Japan has indicated that commitments to purchase more American liquefied natural gas would be a crucial element of its negotiation strategy with the U.S. South Korea has made similar assurances and will begin discussions in Washington soon.
Last month, Taiwan's state-owned oil and gas company, CPC, signed a letter of intent to purchase six million metric tons of gas from Alaska L.N.G., which accounts for nearly a third of Taiwan's liquefied natural gas imports last year.
President Trump has expressed confidence that Asian nations will support the Alaska project, claiming in a March address to Congress that Japan and South Korea were interested in investing "trillions of dollars" in the initiative. This assertion surprised officials in both countries and lacked further clarification on how such investments would be structured, especially given that the project is not expected to start shipping liquefied gas until the early 2030s.
In Japan and potentially elsewhere, a significant challenge remains in securing private-sector buyers who are willing to align with government intentions and commit to long-term gas purchase agreements from Alaska L.N.G. U.S. officials have identified three energy companies—Jera, Tokyo Gas, and Inpex—as potential customers in Japan.
Despite the interest, many stakeholders remain cautious about the financial feasibility of the project. Letters of intent may include clauses allowing for withdrawal from the agreement. Alaska L.N.G. asserts that its gas prices will be competitive once operations commence.