US and Japan poised ‘to form LNG joint venture’

US President Donald Trump said the country is close to forming an LNG joint venture with Japan as part of a wide-ranging trade deal that could see $550bn flow into the US.

Although the specifics are yet to be confirmed, the geographic and economic logic substantially involves the $44bn Alaska LNG project, for which the US is keen to secure Asian buyers.

The President said, “This deal will create hundreds of thousands of jobs … Japan will open their country to trade including cars and trucks, rice and certain other agricultural products, and other things.”

He added that Japan would pay reciprocal tariffs to the US of 15%.

Last month Alaska LNG majority owner and lead developer Glenfarne Alaska reported $115bn-worth of “strategic partner interest” in the project and signed a cooperation agreement with Thailand’s PTT Public Co covering the procurement of 2 million tonnes a year of LNG over 20 years. It has now reserved half of its available third-party LNG offtake capacity to investment grade counterparties.

Glenfarne claims it can deliver LNG into Asia at prices that are lower than globally established Henry Hub pricing from the US Gulf Coast. Additionally, it believes its fully permitted status, proximity, energy security benefits, and federal, state, and local stakeholder support further enhance the value proposition for Asia buyers.

“Recent events in the Middle East once again underscore the significant need for Alaska LNG that comes from a secure, stable, and abundant source without traversing through potentially contested waters,” said Brendan Duval, CEO and founder of Glenfarne.

In a separate agreement, the White House said Indonesia is poised to eliminate “approximately 99% of tariff barriers” for a full range of US industrial, food, and agricultural products exported to Indonesia, and reduce reciprocal tariffs to 19%. Commercial energy deals worth $15bn are also being hatched, mainly for liquid petroleum gas, crude oil, and gasoline.