TOKYO (Reuters) – Higher imports of U.S. liquefied natural gas would enhance Japan’s supply stability and energy security, but they must be pursued in a mutually beneficial manner for both parties, the head of Japan’s gas industry group said on Wednesday.
U.S. President Donald Trump is pushing energy sales to Asian allies while threatening trade tariffs, reviving Alaska’s stalled LNG ambitions.
Last month, Japanese Prime Minister Shigeru Ishiba met with Trump and discussed the 20-million-tons-per-year Alaska LNG project, which is meant to transport gas from Alaska’s remote north via a $44 billion 1,300-km (800-mile) pipeline and ships the fuel 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.
“However, we need to proceed in a way that is beneficial to both sides,” he said.
Uchida, who is also the chairman of Japan’s biggest city gas provider, Tokyo Gas, said the Alaska LNG project is expected to cost more than 6 trillion yen ($40 billion), twice the cost of conventional LNG development.
“To make it profitable, careful consideration is essential,” he said.
The Japanese government has not approached gas companies about expanding purchases of U.S. LNG, Uchida said. Japan is the world’s second-biggest LNG buyer after China.
Asked about the Trump administration’s tariffs, Uchida said he is concerned that further measures, including retaliatory and reciprocal tariffs, could weaken the global economy and lead to a downturn.
He warned that if Japan exports fewer automobiles and other products to the United States, domestic production may decline, potentially reducing energy consumption and affecting.
($1 = 149.8600 yen)
(Reporting by Yuka Obayashi. Editing by Gerry Doyle)
