Energy Alaska LNG is a cornerstone project for Gov. It is meant to carry natural gas from the North Slope of Alaska across an eye-popping 807-mile pipeline. Enbridge’s proposed liquefaction facility would be located in Nikiski, along the Cook Inlet. It will be essential to U.S. efforts to export liquefied natural gas (LNG) to Asian markets. The project’s estimated cost has swelled beyond $40 billion, a figure quoted by the state-owned Alaska Gasline Development back in 2018.
The U.S. is on track to become the world’s largest liquefied natural gas exporter. Recent trade dynamics further underscore the strategic importance of this project. In 2024, the European Union accounted for 39% of U.S. LNG exports, while Japan, South Korea, and India purchased 7%, 6%, and 5% respectively. This unprecedented demand is a testament to the increasing dependency of these countries on U.S. energy exports.
Before the pandemic, the energy sector was around 15% of total U.S. exports in 2024. Current trade talks again raise the possibility of tariffs that would strain these hard-earned relationships. In the case of Europe, they would be subject to a 20% tariff rate unless they renegotiated those trade agreements with the U.S. Japan, too, would face a 24% tariff and South Korea a 25% tariff. These tariffs would be quite detrimental to their purchasing conclusions on American LNG.
President Donald Trump made it a requirement for these countries to start doing more trade with the U.S. during his administration.
“They’re going to have to buy our energy from us, because they need it,” – President Donald Trump
The push for the Alaska LNG project aligns with broader economic goals, particularly in addressing the substantial goods trade deficit with the EU, which reached $235.6 billion in 2024. As Treasury Secretary Scott Bessent recently explained, expanding energy exports would be a triple win.
“That could be an alternative for them to come forward with that because not only would that provide a lot of American jobs, but it would narrow the trade deficit,” – Treasury Secretary Scott Bessent
This faraway project would increase Alaska’s energy exports by another two-thirds. It does so while responding to global market demands. The construction and operational phases will create a total of 239,217 jobs—all hardworking Americans who will advance our local economies and strengthen our global manufacturing partnerships.