On February 7, during a press conference, former President Donald Trump announced a potential joint venture between the United States and Japan focused on liquefied natural gas (LNG) sourced from Alaska. This joint cooperation facilitates renewable energy trade between the two countries. For instance, it has recently entered into agreement to supply liquefied fuel to Japan in as few as eight days.
We recommend that the proposal highlight how deep strategic cooperation between the two countries in the energy sector serves mutual U.S. By leveraging Alaska’s natural gas resources, the joint venture seeks to enhance Japan’s energy security while providing a market for U.S. gas. The previous president further made the case for this partnership. Because without it, he explained, the deal would do little to strengthen economic ties or create jobs on either side of the Pacific.
The announcement coincides with Japan’s heightened need for energy diversification following the Fukushima Daiichi nuclear disaster. Delivering LNG from Alaska to Japan in only eight days would be a major competitive advantage. This quickened timeline stands to increase the competitiveness of U.S. natural gas within the Japanese market.
During the press conference, Trump described how the venture would be structured and operated. He stressed that quick shipping times would allow the development of a dependable and agile LNG supply chain. He pointed out that this initiative showcases the economic benefits that both countries stand to gain. Doing so shows the importance they place on developing robust, diplomatic relations.
Details on how the joint venture will operate are yet to be announced. Japan Inc. representatives have largely stayed silent when it comes to their part in the project. Industry analysts speculate that this timid approach is due to a number of reasons—from market headwinds to regulatory scrutiny.
Regardless of what happens with Japan’s response, today’s announcement is an important step toward future collaboration in the energy sector. Overall, the proposed joint venture greatly boosts U.S.-Japan relations. Its aims are to increase energy independence and strengthen economic collaboration.