Japan, South Korea, and Taiwan Plan Investments in Gas Project in Alaska

According to information published by Bloomberg, Japan, South Korea, and Taiwan intend to invest in an ambitious liquefied natural gas (LNG) export project in Alaska. The total investment is approximately $44 billion. This project has received support from U.S. President Donald Trump.

This is reported by AgroReview

The governments of Asian countries, from South Korea to Indonesia, are actively seeking opportunities to secure LNG purchase agreements with the U.S. They hope to reduce their trade surplus with the world’s largest economy and avoid the negative consequences of high “reciprocal” tariffs imposed by the Trump administration.

Doubts About Pipeline Viability

However, Japan expresses some doubts regarding the viability of the 800-mile pipeline intended to connect gas fields in northern Alaska to a port in the south. At this port, the gas will be liquefied and supplied to Asian consumers. The main issue is the high cost of gas compared to other energy sources.

Despite this, Japan is willing to consider the possibility of entering into an agreement, as the pipeline project could help the country diversify its supplies, particularly by reducing dependence on more risky suppliers, such as Russia, which accounts for about 10% of Japan’s gas imports, as well as on countries in the Middle East.