President Trump said Tuesday that Japan and South Korea would like to work with the US on a $44 billion plan to produce and export natural gas from Alaska, reviving interest in one of the world's biggest energy projects.
The project, known as Alaska LNG, will include the construction of an 800-mile pipeline from fields north of the Arctic to southern Alaska. There, natural gas is liquefied and shipped to Asia. China and Japan are the world's largest importers of liquefied natural gas.
Due to its high cost and construction time, Alaska LNG is considered a long shot in the industry. For years, major Japanese and South Korea energy companies and officials have rejected requests from Alaskan delegations, stalling the progress of the project.
However, under the threat of tariffs from Trump, officials and executives from Japan, South Korea and Taiwan are beginning to explore ways to invest in Alaska LNG.
“Japan, South Korea and other countries each want to be partners with trillion dollar investments,” Trump said in a speech to Congress on Tuesday. “It's all going,” he said of the project. This will be one of the biggest energy investments in US history.
Trump has pledged to boost fossil fuel production during the campaign by speeding up permit approvals and opening new areas for exploration. Additional production will drive oil and gas production beyond already record high levels.
Trump did not explain how the project could see trillions of dollars in investment. But serious considerations for Alaska LNG show that, from over a month after his presidency, Trump has already begun to create a potentially permanent mark in the US energy industry.
In his speech, Trump reiterated his stance to slow the US transition to renewable energy, despite concerns about climate change, while revitalizing fossil fuels. “We have more liquid gold under our feet than any other country on Earth,” he said. “We're called drills, babies, drills.”
Venezuela is believed to have the largest oil reserves in the world.
When asked about Alaska LNG at a press conference on Wednesday, Japan's Chief Branch Director Hayashizaki Hayashi said if good business relations are maintained, “investment in the US will advance in a variety of areas.” For now, he said public and private customers are still discussing future purchases of liquefied natural gas and are waiting for details on the Alaska project.
South Korean news media reported that Trade Minister Anne Doukgen had discussed the project with government officials on a recent trip to Washington. The Ministry of Trade did not immediately respond to a request for comment.
Jin Yu Young and Hisakouno Reports of contributions.
