Adds details on $550bn investment fund in last paragraph
President Donald Trump said late Tuesday that the US and Japan will form a joint venture to develop the 20mn t/yr (2.67bn ft³/d) Alaska LNG project, but he offered no details on how such a plan would work.
The project's lead developer, Glenfarne, plans to construct the project, estimated to cost $44bn, in two phases with separate final investment decisions. The first includes a nearly 800-mile-long pipeline from Alaska's North Slope to the Anchorage area in the southern part of the state. The second phase would add compression equipment, a 42-mile connector pipeline and the 20mn t/yr liquefaction terminal in Nikiski, near Anchorage.
It was not clear which phase of the project Trump was referring to.
Trump made the announcement while addressing lawmakers about a trade deal between the US and Japan, under which the US will apply 15pc so-called reciprocal tariffs on Japanese imports instead of the previously announced 25pc.
"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 said.
Glenfarne declined to comment on any potential talks about a joint venture with Japan or Japanese firms, but said "federal support is accelerating our engagement with prospective project partners".
Glenfarne signed a non-binding agreement with Thailand's PTT for "strategic participation" in Alaska LNG, which would allow PTT to buy 2mn t/yr over a 20-year term. Taiwan's state-owned CPC signed a letter of intent with Glenfarne in March.
Japan's largest LNG importer, JERA, has expressed interest in Alaska LNG but has not signed any binding or non-binding agreements. In May and June, the power producer signed multiple deals for 5.5mn t/yr of LNG from US terminals on the Gulf Coast over 20 years.
Trump could be referring to a new investment vehicle, which the White House outlined in a fact sheet on Wednesday. Japan will invest $550bn, which the US will then direct toward industries including LNG, according to the fact sheet.
