Alaska’s Governor Updates Trump on Asian Gas Strategy Amid Tariff Challenges

By Tim Kelly adn Katya Golubkova

TOKYO, March 28 (Reuters) – Next week, Alaska’s governor is set to update the Trump administration on efforts to gain Asian support for a massive $44 billion natural gas export initiative.This move aligns with Washington’s ongoing trade strategies.

Governor Mike Dunleavy is currently wrapping up his Asian tour aimed at attracting investors and securing long-term buyers from Japan, South Korea, and Taiwan. Accompanied by leaders from the Alaska Gasline Progress Corporation (AGDC) and development partner Glenfarne Group, he has engaged in discussions across Taiwan, Thailand, South Korea, and japan.

Dunleavy shared with Reuters in Tokyo that fostering gas purchases while encouraging investment in the U.S. can enhance federal negotiations. “I’m eager to connect with the president or at least some key secretaries involved in this project,” he mentioned.

This visit comes amid heightened trade tensions from Washington; just recently, Trump announced a hefty 25% tariff on imported cars starting april 3—an action that could significantly impact Japan’s and south Korea’s automotive industries.

While dunleavy hasn’t secured any firm commitments from Japanese or South Korean investors yet, he did manage to obtain a letter of intent from Taiwan for an annual purchase of 6 million metric tons of liquefied natural gas (LNG) after two meetings with President Lai Ching-te. The overall goal for this project is a production capacity of 20 million tons per year.

Brendan Duval, CEO of Glenfarne Group, noted that Taiwan shows strong interest in aligning geopolitically with the U.S., which could be beneficial for both parties involved.

The plan involves transporting natural gas over a proposed pipeline stretching approximately 1,300 kilometers (800 miles) down south where it will be liquefied before being shipped off to East Asia starting around 2030. Construction is slated to kick off in 2026 with initial gas flow expected by late 2028; completion of the conditioning plant should wrap up by early 2030 according to statements released by Dunleavy’s office earlier this month.

In February during talks with Japanese Prime Minister Shigeru Ishiba, Trump urged support for this Alaskan venture as part of his broader strategy encouraging allies to invest in U.S. energy resources while together imposing tariffs on imports—a balancing act that raises eyebrows among industry experts.

Japanese firms like Inpex Corp., one of their leading oil explorers have expressed skepticism regarding the project’s feasibility despite ongoing discussions between Alaskan officials and key figures such as Japan’s Minister of Economy Yoji Muto and South Korean Trade minister Ahn Duk-geun during their trip.

Plans detailing engineering designs are anticipated by Q3 this year along with an investment decision likely coming before year-end—this would enable Asian stakeholders to commit more firmly once they see competitive pricing assurances as promised by Duval at Glenfarne Group.

Most funding will come from U.S.-based investors while any equity contributions from Japanese or other Asian partners may hinge upon agreements tied directly to LNG output prepared for exportation—a crucial factor moving forward according to industry insiders who believe strong leadership support out of Japan will play an essential role here.