On Monday, President Donald Trump reignited the energy debate by announcing a bold new energy partnership with Japan that could reshape the LNG export landscape. During a joint press conference with Japanese Prime Minister Shigeru Ishiba, Trump declared that Japan would soon begin importing “historic new shipments” of U.S. liquefied natural gas (LNG), spotlighting the potential of a long-discussed, yet unbuilt, natural gas pipeline in Alaska.
“We’re talking about the pipeline in Alaska, which is the closest point of major oil and gas to Japan, by far,” Trump said. He also mentioned the possibility of forming a joint venture between the United States and Japan, aimed at tapping Alaska’s vast oil and gas resources. Although details were sparse during his remarks and the Japanese embassy did not respond to further inquiries, the announcement has already set off waves of optimism among industry stakeholders and policymakers alike.
At the heart of this new initiative is the $44 billion Alaska LNG project, spearheaded by the Alaska Gasline Development Corporation (AGDC). The project, which received a green light from federal energy regulators nearly five years ago, has faced its share of hurdles, including legal challenges and difficulties in securing firm commitments from prospective buyers. Now, with Trump’s renewed focus on the project, there is hope that the lingering obstacles can be overcome.
The Alaska LNG project is designed to harness the vast natural gas reserves of Alaska’s North Slope. It envisions processing roughly 3.5 billion cubic feet per day of natural gas and transporting it via an 807-mile, 42-inch pipeline to a liquefaction facility in Nikiski. If realized, the project is expected to produce up to 20 million tonnes of LNG per annum and could potentially start natural gas deliveries by 2031. With federal approvals already in place—including authorization from the Federal Energy Regulatory Commission (FERC) and rights-of-way permits from the Department of the Interior—the project appears technically ready to move forward, pending resolution of its commercial and legal challenges.
For Alaska, Trump’s announcement is particularly significant. Governor Mike Dunleavy expressed his support for the initiative, emphasizing that Trump had long been a staunch advocate for Alaska’s resource potential. “President Trump has been a steadfast supporter of Alaska and its ability to be the solution to many of America’s issues through its vast natural gas resources, its geopolitical position in the Arctic and the Pacific, and Alaska’s ability to help its Asian neighbors such as Japan,” Dunleavy stated.
The strategic implications of this partnership extend beyond simple trade. Japan, which has been seeking to diversify its energy sources since the Fukushima nuclear disaster, stands to benefit from a stable, reliable supply of LNG from a nearby source. By reducing its reliance on more volatile energy supplies, Japan could enhance its energy security, while also bolstering economic ties with the United States. Additionally, this move aligns with broader geopolitical objectives: strengthening the US-Japan alliance and reaffirming America’s role as a key energy exporter in the global market.
The renewed focus on Alaska LNG has not come as a surprise to Alaska’s political leaders. In recent months, Alaska Senator Dan Sullivan has actively lobbied President Trump and his national security team on the importance of advancing the Alaska LNG project. This effort is part of a broader initiative to reposition Alaska as a central player in the United States’ energy strategy. On his first day in office, President Trump signed an Alaska-specific executive order titled “Unleashing Alaska’s Extraordinary Resource Potential,” which declared the Alaska LNG project a top priority of his administration.
Critics of LNG point out that, although it is cleaner than other fossil fuels such as coal or oil, it still contributes to greenhouse gas emissions. They argue that long-term energy strategies should increasingly pivot towards renewable energy sources. Nonetheless, in the near to medium term, LNG remains a critical component of the global energy mix—a bridge fuel that can help ensure energy security while the transition to greener technologies unfolds.
Trump’s comments underscore a recurring theme in his energy policy: the belief that American energy dominance can serve both economic and strategic interests. By forging a joint venture with Japan, Trump envisions a future where the United States not only benefits from increased export revenues and job creation but also cements its role as a dependable energy partner to key allies in the Asia-Pacific region.
As discussions around the Alaska LNG project and the broader US-Japan energy partnership continue, industry watchers and policymakers alike will be keeping a close eye on developments. The coming months may determine whether this ambitious project can finally overcome its longstanding challenges and deliver on its promise—a promise of enhanced energy security, economic growth, and stronger international ties.
