JERA Considers Alaska LNG Project as Potential Gas Supply Source
Japan’s top power generator JERA, the world’s second-largest LNG buyer after China, is contemplating the $44 billion Alaska LNG project as a new source of liquefied natural gas (LNG), according to Reuters. Currently sourcing around 10% of its LNG from the US, JERA purchases approximately 35 million metric tonnes annually and is actively seeking to diversify its supply portfolio for improved stability.
The monumental infrastructure project aims to transport natural gas from Alaska’s North Slope fields via an 800-mile pipeline, facilitating both domestic use and export to Asian markets. By circumventing the Panama Canal, the project could radically alter energy trade routes between North America and Asia. It includes the construction of a pipeline from fields north of the Arctic Circle to southern Alaska, where the gas would be cooled into liquid form for shipment on tankers.
In March 2025, Taiwan’s CPC Corp signed a preliminary agreement with Alaska Gasline Development Corp, marking a significant milestone for the Alaska LNG project. Officials from Japan, South Korea, and Thailand are also evaluating potential involvement, helping to accelerate this ambitious initiative to enhance US natural gas exports to Asia.
Progress continues with CPC Corp’s non-binding agreement to purchase LNG and invest in the project, thus fulfilling Taiwan’s energy security, as indicated by President Lai Ching-te. For Asian countries, shipping LNG from Alaska presents cost and time advantages over traditional sources in Australia, the Middle East, and the US Gulf Coast.
Despite historic caution about the project’s costs and viability, the US Department of Energy emphasizes multiple benefits, including job creation and an estimated $10 billion annual reduction in the trade deficit. South Korea’s Industry Minister Ahn Duk-geun acknowledges ongoing discussions but stresses the need for thorough due diligence.
Although the project has been discussed for years, challenges concerning its scale, cost, and complexity remain. If successful, shipping liquefied gas is not expected to commence until the early 2030s, marking a significant long-term investment in America’s energy export capabilities.
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