Japan Gas Industry Head Says Higher US LNG Imports Must Be Mutually Beneficial

TOKYO: Increased imports of U.S. liquefied natural gas would improve Japan's energy security and supply stability. But, they should be sought in a way that benefits both sides, stated the leader of Japan's gas industry association on Wednesday. U.S. President Donald Trump is advocating for energy exports to Asian partners while threatening trade tariffs revitalising Alaska's halted LNG projects. In the previous month, Japanese Prime Minister Shigeru Ishiba held discussions with Trump regarding the 20-million-tons-per-year Alaska LNG project, aimed at transporting gas from Alaska's distant north through a $44 billion 1,300-km (800-mile) pipeline to deliver the fuel to Japan, South Korea, and Taiwan as per Reuters.

"Japan Gas Association Chairman Takeshi Uchida stated at a news conference on Wednesday that while it is not exclusive to Alaska, increasing LNG procurement from the U.S. can improve Japan's energy supply and security." "Nonetheless, we must move forward in a manner that advantages both parties," he stated. Uchida, the chairman of Tokyo Gas (9531.T), Japan's largest city gas company, stated that the Alaska LNG initiative is projected to exceed 6 trillion yen ($40 billion), which is double the expense of standard LNG development. He stated that meticulous thought is necessary to ensure profitability.

ALSO READ: Focus Is Now On Developing Export-Oriented Strategies', Says Bhaskar Pegu At Assam FPO Exhibition

Uchida stated that the Japanese government has not reached out to gas companies regarding an increase in U.S. LNG purchases. Japan ranks as the second-largest LNG purchaser globally, following China. When questioned about the tariffs from the Trump administration, Uchida expressed his worry that additional actions, such as retaliatory and reciprocal tariffs, might weaken the global economy and result in a recession. He cautioned that if Japan ships fewer cars and other items to the United States, local production could decrease, possibly lowering energy use and impact.