Mitsui Eyes Alaskan LNG as U.S.-Japan Trade Tensions Rise

Mitsui considers an LNG project in Alaska as Japan seeks to strengthen ties with the U.S. amid potential tariffs. While trade tensions escalate with China, significant opportunities exist for Mitsui in U.S. supply chain rebuilding, alongside challenges in its renewable energy initiatives.

Japanese trading giant Mitsui may explore a natural gas liquefaction project in Alaska, although no final decisions have been made, the company's CFO Tetsuya Shigeta announced. As Japan aims to fortify economic relations with the U.S. and avoid trade conflicts, supporting a $44-billion gas pipeline might be on the table.

The anticipated meeting between Japan's Prime Minister Shigeru Ishiba and U.S. President Donald Trump could amplify Japan's investment stature in the U.S. According to Shigeta, an LNG project in Alaska is a logical proposal, offering proximity benefits to Japan and other Asian markets.

As China retaliates against U.S. tariffs, economic tensions mount, impacting sectors like Mitsui's automobile and steel businesses in Mexico and Canada. These geopolitical risks, however, could present Mitsui opportunities to reconstruct U.S. supply chains. Meanwhile, soaring costs and currency fluctuations challenge its renewable energy projects in Japan.

(With inputs from agencies.)