Japan Eyes Alaskan Gas Pipeline to Smooth U.S. Trade Ties

Japan considers supporting a $44 billion Alaskan gas pipeline to improve trade relations with the U.S. and mitigate tariff threats. Although the pipeline's cost-effectiveness is uncertain, Japan might commit support to diversify energy sources away from riskier regions like Russia and the Middle East.

Tokyo is contemplating support for a $44 billion gas pipeline in Alaska, aiming to enhance relations with U.S. President Donald Trump and prevent trade disputes. Sources revealed Japan's interest in the project as Prime Minister Shigeru Ishiba prepares for discussions with Trump.

The proposed 800-mile pipeline would connect northern Alaskan gas fields to southern ports, providing liquefied natural gas (LNG) to Asian markets. Despite doubts about its economic viability, Japan could consider a deal to diversify energy sources, moving away from imports from Russia and the Middle East.

Japan might also offer concessions like increasing U.S. gas purchases and boosting investments to shrink the $56 billion trade deficit. Meanwhile, the possibility of Japan's involvement in the Alaska LNG project remains uncertain, dependent on pricing and flexible terms for Japanese buyers.

(With inputs from agencies.)