- JERA considers Alaska LNG a potential supply source for diversifying its energy portfolio while Japanese officials prepare for another round of U.S. tariff talks.
- Despite high construction costs and limited project details, JERA and Mitsubishi Corp are exploring investment opportunities in Alaska LNG, a $44 billion project.
JERA, Japan’s largest liquefied natural gas (LNG) buyer, is considering Alaska as a potential source for its LNG supply, according to an executive from the company. The move comes as Japanese officials prepare to head to the United States for another round of tariff discussions, with energy security and supply stability high on the agenda.
Naohiro Maekawa, a JERA executive, confirmed the interest during a briefing on Monday, “From the perspective of energy security and supply stability… we would like to consider Alaska as one of the promising suppliers, among various other options.”
The proposed $44 billion Alaska LNG project, which includes a pipeline and LNG plant, remains a significant part of U.S. President Donald Trump’s energy strategy, with Japan, South Korea, and Taiwan encouraged to support the initiative.
The discussions coincide with ongoing U.S.-Japan tariff negotiations. Despite a 24% tariff on Japanese exports to the U.S., President Trump has temporarily paused the levies until early July, leaving a 10% universal tariff and a 25% duty on car exports in place. Japan’s lead trade negotiator, Ryosei Akazawa, will meet with U.S. officials this week to continue talks on resolving the tariff dispute.
JERA is the world’s largest LNG buyer, securing annual volumes of approximately 35 million metric tons for domestic use and trading. Japan itself is the world’s second-largest LNG buyer, trailing China. Despite its substantial demand, Australia is the country’s primary LNG supplier.
Mitsubishi Corp, Japan’s leading trading house, has also expressed interest in potentially investing in the Alaska LNG project, though its CEO stressed that any decision would require careful review.
A source close to the matter revealed that Trump’s Energy Security Council plans to host a summit in Alaska in early June, with expectations that Japan and South Korea will announce commitments to the project.
Although Alaska is considered a viable option due to its proximity to Japan, some companies remain hesitant to make firm commitments due to high construction costs and a lack of detailed project information, according to industry sources in Japan.
Meanwhile, JERA, a joint venture between Tokyo Electric Power (TEPCO) and Chubu Electric Power, reported a significant dip in its annual net profit.
For the fiscal year ending in March, JERA’s net income fell to 184 billion yen ($1.3 billion), a marked decrease from the previous year. This was partly due to underperformance in its overseas power generation and renewable energy business. However, the company projects a rebound in profit, expecting to reach 230 billion yen for the current year.
JERA operates about 30 overseas power generation projects across more than 10 countries and manages renewable energy initiatives in markets such as the U.S., Belgium, Taiwan, and the UK. Its overseas portfolio contributes around 13 gigawatts (GW) of capacity, compared to its 59 GW domestic power generation capacity.
While the focus on Alaska LNG is still in the early stages, the project has captured significant attention due to its potential role in diversifying LNG supply sources. Japan’s continued interest, especially amid the complex backdrop of U.S.-Japan trade relations, signals the growing importance of energy security in the region’s strategic energy planning.
As discussions progress, JERA’s cautious approach reflects the uncertainty surrounding the project’s financial and logistical details, leaving room for further deliberations as both countries work toward a mutually beneficial energy partnership.