As the president pressures countries to buy more American energy, Asian officials and investors are reconsidering a hugely expensive plan stalled for decades.
New pipeline could shorten L.N.G. trips
Proposed pipeline
Alaska
Nikiski
From new export facilities
in Alaska, liquified natural
gas could reach Japan in
about a week.
JAPAN
U.S.
Tokyo
It takes about three weeks from states along the Gulf Coast, or about 30 days depending on Panama Canal congestion.
Houston
Pacific Ocean
Proposed pipeline
Alaska
Nikiski
JAPAN
U.S.
Houston
Pacific Ocean
Tokyo
From new export facilities in Alaska, liquified natural gas could reach Japan in about a week.
It takes about three weeks from states along the Gulf Coast, or about 30 days depending on Panama Canal congestion.
The geography behind a plan to ship natural gas from the North Slope of Alaska to Asia makes good sense. Alaska has vast stores of gas and is just a little over a week at sea from Asia, which has some of the world’s biggest importers of liquefied natural gas.
But those countries have long been wary of the enormous cost of building the infrastructure to make it happen. That has contributed to a decades-long standstill.
Now, Asian buyers are giving the Alaska natural gas project a second look.
Their pivot was driven not by a change in the underlying economics, but by an abrupt political shift in Washington, where President Trump is pressuring countries to buy more American energy and appears bent on tapping Alaskan reserves.
Under threat of new tariffs, officials and executives in Japan, South Korea and Taiwan are considering ways to participate in the plan called Alaska L.N.G. The $44 billion project involves constructing an 800-mile pipeline from fields north of the Arctic Circle to southern Alaska. From there, the gas would be cooled to liquid form and shipped to Asia.
In Japan, a state-owned bank and a government-backed energy group have been exploring whether to provide financing and investment for Alaska L.N.G., according to three people familiar with the matter, who spoke on the condition of anonymity to discuss plans that are in their early stages.