Trump tariffs push Asian partners to weighing the Alaska SPG project

Japan, South Korea and Taiwan are considering investing in a large -scale natural gas project in Alaska in an attempt to reach trade deals that could meet President Donald Trump’s demands and avoid high export tariffs.

Alaska has long sought to build a pipeline for 800 miles, crossing the state from the northern slope in the Arctic circle to the entrance to the cook in the south, where the gas will cool down into the export to Asia. The project with a stunning price tag, which exceeded $ 40 billion, has been stuck on the drawing board for years.

Alaska SPG, As you know, the project shows new signs of life – Trump is a project as a national priority. Finance Minister Scott Baby said earlier this month that the draft eliminated natural gas (SPG) could play an important role in trade negotiations with South Korea, Japan and Taiwan.

“We are thinking about the great project of the Mr. Alaska that South Korea, Japan (and) Taiwan is interested in financing and accepting a large part of the caroza,” Baverte told reporters on April 9, saying that such an agreement will help to reach the goal of Trump – to reduce the US trade deficit.

State Oil and Gas Company Taiwan CPC Corp. Signed a letter of intention in March to purchase six million metric tons of gas in Alaska, Brandan Duval said, CEO and founder of the company founder Glenfarne GroupLeading project developer.

“You can imagine how geopolitical improvements, be it at tariffs or military reasons – Taiwan is indeed focused on signing up,” Douul said in an interview with CNBC. CPC also offered to invest directly in Alaska SPG and supply equipment, Duval said.

March trading mission

Governor Duval and Alaska Mike Danlivi traveled to South Korea and Japan in a trade mission in March, meeting with high -ranking officials in government and industry. Japanese and South Korean companies asked if their development banks could help finance Alaska SPG, Duval said.

“There have been quite a few requests from India recently, so there is a fourth horse that went into the race,” Duval said. He said that Thailand and other Asian countries also showed interest.

The Alaska SPG project has three main works: a pipeline, a gas refining plant on the northern slope and a gas elimination plant to Nikiski, Alaska. It is estimated that these premises cost approximately $ 12 billion, $ 10 billion and $ 20 billion, respectively, Dunlevi said at the Houston’s energy conference in March.

Alaska’s permits are already in force, the CEO said. Glenforn expects to make the final investment decision in the next six -12 months in the first stage of the project, the pipeline from the northern slope to the an an annex that will supply gas for internal consumption in Alaska, Duval said.

Construction at the MPG plant is expected to begin at the end of 2026, the CEO said. The goal is to complete the construction of the Alaska SPG for four and a half years, when in 2031, starting in 2031, full commercial operations.

Alaska SPG plans to produce 20 million metric tons of MPG per year, which is about 23% of 87 million tons of the SPG that US exported last yearAccording to KPler, a product researcher.

The solution of Alaskan resources

Alaska plays a central role in the purpose of Trump to increase oil and gas exports to the USA, part of the White House agenda for “energy domination”. The President issued an executive order on his first day as he seeks to press Alaska “The stunning resource potential“Prioritizing the development of the SPG in the state.

“We will have what is being installed on our walls in Alaska for decades,” said Governor Dunlivi at the Houston Conference last month, citing the executive order.

After the network importer, the US quickly became the largest exporter of the MPG in the world, playing an increasingly important role in nourishing power plants in Asia and Europe for allies with disabilities. For example, Japan and South Korea accounted for about 8% of the US LSG’s exports last year, according to Kpeler Data.

Trump’s administration views Alaska SPG as “an important strategic project”, – said in the interior of Burgum Doug Houston Energy Conference. The exports of the Alaska SPG will reach Japan for about eight days, and does not pass through the overloaded Panama -Canal from the Terminals on the Gulf coast, Danlivi said at the same conference.

“They may be able to deliver them the most effective MP from the Allies partner,” avoiding points, Duval said. “This is the only SPG that the United States can put, which has a direct route, and they are very aware of it in modern conditions.”

Northern Pacific negotiations

Trump told reporters during A joint press conference In February, Japanese Prime Minister Shiger Isibrus, which both countries discussed the pipeline and the possibility of a joint venture for oil and gas operating in Alaska. Trump said he discussed the “big purchase in the US” 8 April phone call With Acting President of South Korea Khan Dak-S and Korea’s participation in a “joint venture in Alaska’s gas pipeline”.

Japan wants to keep its security agreement with the US regarding February presentation. “We are now in a completely” transaction “world of trade,” the executives said. They need to invest more in the US, buy more SPG and enter a joint venture related to oil and gas in Alaska, they said.

The project is likely to be structured as a free joint venture, and Asian partners sign large -scale SPG contracts, Duval said, and it is not necessarily translated into Japan, Taiwan and South Korea, which conduct direct rates in Alaska, although Glenforn is open to the opportunity.

The goal of Glegen-to-be long-term owner and operator Alaska SPG with partners, Duval said. Glenfarne is a private developer, owner and operator of energy infrastructure based in New York and Houston. The company has assumed 75% of Alaska SPG’s shares Corporation for the development of gas gas Alaska In March, AGDC retains 25%.

Blockpapers and commercial vitality

Trump administration clearly pushes on Japan, South Korea and Taiwan to invest in Alaska SPG, said Bob McNali, president of the company Rapidan Energy And a former Energy Advisor of President George W. Bush. Despite the fact that Japan wants to place Trump at the same time and diversify his SPG devices, Tokyo can still be ashamed of investing in Alaska SPG from the cost, complexity and risk of the project, Maknali said.

Another checkpoint is that the Democrats can return to power in 2028 and try to stop promoting the project, citing environmental impact, McNali said. In the end, President Joe Biden stopped permission for the new exports of SPG to countries, including Japan, which have no free trade agreements, but Trump canceled Biden’s suspension as part of the executive orders related to his first day.

In addition to political risk, Alaska SPG “has no clear commercial logic,” said Alex Munton, head of the world gas and SPG in Rapidan. “If that was, it would have much more support than so far, and this project has been planning for literally decades,” Muntan said. He said there were more attractive, existing SPG options for Asian customers on the Bay coast.

Munton said the project is expensive even by the standards of the SPG, which creates some of the most expensive infrastructure in the energy sector. The price tag over $ 40 billion is likely to be revised up, given that it is Two yearsThe analyst said.

“You must assume that the costs will be much higher than the quoted figures,” Muntan said. Alaska SPG is likely to need a “state policy or state commitment to revive it,” the analyst said.

Duval said Alaska’s Mr. would be competitive without a state subsidy. “This is a naturally competitive source of the Mr., regardless of geopolitical advantages, regardless of tariff discussions,” he said.

“We have the US president support,” Danley said in Houston. “We have Asian allies in need of gas. Geopolitical alliances change. The tariff issues arise. If we really look at it in this context, this is a very viable project.”