Japan Weighs Support for $44B Alaska Gas Pipeline Amid Trade Talks with U.S.

Japan is considering supporting a $44 billion gas pipeline in Alaska to strengthen ties with U.S. President Donald Trump and mitigate trade friction. The 800-mile pipeline aims to transport gas from Alaska's north to a southern port for liquefaction and export to Asia. However, Tokyo remains skeptical about the project's economic viability.

Officials anticipate Trump may raise the topic when he meets Japanese Prime Minister Shigeru Ishiba in Washington next week. Japan may offer to explore a deal if requested, alongside commitments such as increasing U.S. gas imports and boosting defense and manufacturing investments to reduce the $56 billion trade deficit and avoid tariffs.

Trump has championed the project as vital for U.S. energy security and economic growth. While Japan already has ample LNG supply—trading 38 million tonnes last year—it could benefit from diversifying away from Russia and the Middle East. Ishiba has emphasized Japan’s need for a stable energy supply but has not explicitly mentioned the Alaska project.

Any Japanese commitment would depend on competitive pricing and flexibility, including the ability to resell LNG purchases. Japan’s state-backed banks, such as the Japan Bank for International Cooperation (JBIC), could finance the project, potentially involving major trading firms like Mitsubishi Corp and Mitsui & Co.

Mitsubishi previously agreed to assess ammonia production feasibility in Alaska but has not committed further. The Alaska Gasline Development Corporation (AGDC), overseeing the project, has engaged with Japanese energy firms and recently partnered with developer Glenfarne to advance the pipeline.

Originally approved during Trump’s first term, the project secured final legal clearance in 2022 despite environmental opposition. As Japan seeks to navigate trade relations, its potential support for the pipeline could be a key move in strengthening U.S.-Japan economic ties.