Tokyo Gas has signed a letter of intent to explore purchasing liquefied natural gas from Alaska, Nikkei reported, becoming the second Japanese utility to back the long-stalled project ahead of President Donald Trump’s arrival in Tokyo next week for talks with Prime Minister Sanae Takaichi.
The agreement follows a similar commitment by JERA, Japan’s largest power producer, in September. Both deals remain non-binding preliminary arrangements for the Alaska LNG project, which faces significant hurdles including its $44 billion price tag and uncertain economics.
The timing aligns with Washington’s intensifying campaign to curtail Japan’s Russian energy purchases. Treasury Secretary Scott Bessent told Japanese officials last week that the Trump administration expects Tokyo to halt imports from Russia, which currently supplies about 9% of Japan’s LNG needs through the Sakhalin-2 project.
Japan has resisted setting a firm timeline to end Russian purchases, with Trade Minister Yoji Muto stating the country will prioritize its national interests and energy security. The Alaska project, championed by Trump since his return to office, wouldn’t begin operations until at least 2031, leaving Japan dependent on existing suppliers in the interim.
Analysts question whether the project’s shipping costs and construction expenses can compete with cheaper alternatives from the Gulf Coast or Canada’s LNG Canada facility.
