Japan Gas Industry Head: Higher US LNG Imports Must be Mutually Beneficial
The head of Japan's Gas Industry Group said that higher imports of U.S. Liquefied Natural Gas would improve Japan's energy security and supply stability. However, they must be pursued on a mutually-beneficial basis for both parties.
U.S. president Donald Trump pushes energy sales to Asian allies, while threatening tariffs on trade. This is reviving Alaska LNG's stagnated LNG ambitions.
Last month, Japanese Prime Minister Shigeru Ishiba met with Trump and discussed the 20-million-tons-per-year Alaska LNG project, which is meant to transport gas from Alaska's remote north via a $44 billion 1,300-km (800-mile) pipeline and ships the fuel to Japan, South Korea and Taiwan.
Takeshi Uchida, chairman of the Japan Gas Association, said at a press conference on Wednesday that a greater amount of LNG from the U.S. could improve Japan's energy security and stability.
He said, "However we must proceed in a manner that benefits both sides."
Uchida is the chairman of Tokyo Gas, Japan's largest city gas supplier. He said that the Alaska LNG Project is expected to cost over 6 trillion yen (40 billion dollars), which is twice as much as conventional LNG development.
He said that careful consideration was essential to make the project profitable.
Uchida stated that the Japanese government had not contacted gas companies to discuss expanding U.S. LNG purchases. Japan is the second largest LNG buyer in the world after China.
Uchida, when asked about the Trump Administration's tariffs said that he was concerned further measures could erode the global economy, and even lead to a recession.
He warned that the domestic production could decline if Japan exports less automobiles and other goods to the United States. This would reduce energy consumption, and affect.
(source: Reuters)
