JERA, Japan’s largest utility, is one of several Japanese companies that have expressed interest in this project, according to two sources. Still, Japan is cautious about fully supporting the $44 billion project because of its high costs.
JERA, Japan’s top energy producer, plans to explore the possibility of buying liquefied natural gas from the Alaska liquefied natural gas project. Both JERA and developer Glenfarne confirmed they are in talks to finalize a sale agreement for the $44 billion project.
After taking over as lead developer in March, Glenfarne has made preliminary agreements that could lead to sales from the project’s 20 million metric tons per year capacity. These include deals with Taiwan’s CPC (formerly Chinese Petroleum Corporation) and Thailand’s Petroleum Authority of Thailand (PTT), but no deals have been finalized yet.
On Tuesday, energy developer Glenfarne said that 50 companies have formally stated that they are interested in signing contracts worth over $115 billion for the Alaska LNG project, a major infrastructure effort supported by US President Donald Trump.
The plan was to move natural gas from Alaska’s remote north to the Gulf of Alaska through an 800-mile pipeline that has been discussed for years.
But Trump’s move of “threatening” allies like Japan and South Korea to buy US energy through trade tariffs has renewed interest in the project.
In a press release on Tuesday, Glenfarne announced that the project team has completed the first phase of selecting its strategic partners and has received interest from companies in the US, Japan, South Korea, Taiwan, Thailand, India, and the EU.
JERA, Japan’s largest utility, is one of several Japanese companies that have expressed interest in this project, according to two sources. Still, Japan is cautious about fully supporting the $44 billion project because of its high costs.
A spokesperson from Glenfarne declined to provide comments. JERA also opted not to comment. Other significant Japanese LNG buyers, including Tokyo Gas, Osaka Gas, and Kansai Electric Power, similarly chose not to comment.
On Wednesday, Glenfarne announced in a statement that it has entered into a letter of intent with JERA to supply 1 million tons per year of LNG from the project for 20 years on a free-on-board basis.
This letter of intent will promote information exchange and teamwork with Glenfarne as JERA evaluates the project’s timelines and economic viability, stated the Japanese company, a joint venture of Tokyo Electric Power and Chubu Electric Power, in a separate statement on Thursday.
Yosuke Tsugaru, JERA’s Chief Low-Carbon Fuel Officer, stated that the LOI was the foundation for the ongoing conversation with Glenfarne, and as additional details emerge, they will be able to better understand the project.
Glenfarne aims to make a final investment decision on the Alaska LNG pipeline by late 2025 and hopes to start LNG exports in 2026.
If built, the Alaska LNG project is expected to export 20 million metric tons of liquefied gas per annum, according to the project details.
Since returning to the office, Donald Trump has promised to move the project forward. The goal is to transport natural gas from Alaska’s remote north, liquefy it, and export it.
Even with Trump’s support, some Japanese officials and energy leaders worry that the project’s high costs could make its gas less competitive than other options.
Japan has hired the consultancy Wood Mackenzie to assess the proposed 800-mile (1,287 km) Alaska gas pipeline and LNG facility, indicating that Tokyo is contemplating a more significant role in the project. One insider said the review might ease ongoing concerns among possible Japanese buyers and investors about a project that has faced cost and logistical problems for decades.
In summary, the Alaska LNG project is drawing strong international interest and support, but its future will depend on solving the economic and logistical issues that have delayed it for years. Japanese companies like JERA are positive about the project, but are focused on seeing if it is viable before investing in it. In the next few months, investors will closely assess the project’s competitiveness and potential to meet the growing energy demands in Asia and beyond.
