Leading Japanese energy company JERA has announced it signed an initial agreement to purchase liquefied natural gas (LNG) from a large-scale pipeline project in Alaska, following Tokyo's commitment to increase purchases from the U.S. as part of a trade deal. The company stated it has signed a letter of intent with American project developer Glenfarne “to advance negotiations regarding the purchase of LNG from the Alaska LNG project.”

Agreement Details and Timeline

Glenfarne, which serves as the lead company on the pipeline, clarified in a statement that the letter contains details about “the sale of one million tons per year of LNG from the Alaska LNG project for a period of 20 years.” The long-delayed USD 44 billion project must overcome various complex technical challenges and is not expected to become operational before 2030 at the earliest.

U.S. President Donald Trump presents the 1,300-kilometer (800-mile) pipeline as a means of producing LNG for shipment to Asia by tankers. Glenfarne indicated that it plans a final investment decision on the Alaska LNG pipeline later this year and to finalize gas export commitments by 2026.

Trade Agreement Framework

The purchase of LNG from Alaska was mentioned in the Japan-U.S. trade agreement, officially signed last week. A joint statement from the two countries noted that Tokyo is committed to “stable and long-term increasing purchases of American energy,” including “exploring a new supply agreement from Alaska” for LNG. U.S. Energy Secretary Chris Wright stated that the announcement “from JERA and Glenfarne is another important step forward for the Alaska LNG project,” according to quotes included in both companies' statements.

Japan's Energy Security Strategy

Resource-poor Japan is seeking to strengthen its energy security by diversifying its resource supply, while remaining heavily dependent on oil imports from the Middle East. Japanese government spokesperson Yoshimasa Hayashi addressed the agreement at a press conference, stating that “increasing supplies of American LNG, which is highly competitive, has the potential to diversify supply sources.”

Hayashi added, “Overall, this will be beneficial for our country, especially considering it can help secure and stabilize the resources we need.”

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