US President Donald Trump on Tuesday said that the US and Japan will form a joint venture in order to develop a liquefied natural gas (LNG) project in Alaska.
However, a Japanese official denied being aware of such plans.
Trump’s announcement came moments after he announced a trade deal with Japan, reducing tariffs to 15 per cent on goods including auto parts. Japan became the first country to strike a trade deal with the US that would also reduce auto tariffs.
Trump had earlier threatened to impose a 25 per cent tariff on Japanese goods starting August 1.
What is the US-Japan LNG deal?
It was not immediately clear whether Trump was referring specifically to the proposed $44 billion Alaska LNG project. That project would consist of an 800-mile (1,300-km) pipeline carrying gas to a planned liquefaction plant for export.
Trump’s announcement of the venture came in comments to lawmakers at the White House where he discussed his trade deal with Japan.
“We concluded the one deal … and now we’re going to conclude another one because they’re forming a joint venture with us at, in Alaska, as you know, for the LNG,” Trump told the lawmakers. “They’re all set to make that deal now.”
The METI official, who oversees resource development, said the agency is working to confirm Trump’s comments.
Several companies from Japan have expressed an interest in buying LNG from the project, along with Thailand’s PTT and India’s GAIL.
JERA and Tokyo Gas, Japan’s two biggest LNG buyers, have expressed their interest in the Alaska LNG project but said they would need to assess specific conditions, including costs, before moving forward.
But when asked about the joint venture mentioned by Trump, a JERA spokesperson said they could not confirm it.
A Tokyo Gas spokesperson declined to comment, saying the company is not involved in a joint venture for LNG in Alaska and is not familiar with the details.