Japanese Prime Minister Ishiba Shigeru and US President Donald Trump confirmed at their summit on Friday that the US will increase exports of liquefied natural gas to Japan.
At a news conference after the summit, Trump said, “Japan will soon begin importing historic new shipments of clean American liquefied natural gas in record numbers.”
Trump expressed the hope that the US will attract investment from Japan. He said, “We were talking about a joint venture of some type between Japan and us, having to do with Alaska oil and gas. That’s very exciting.”
Reducing trade deficits and increasing fossil fuel production have been at the top of Trump’s agenda since he took office in January.
Trump hopes to reduce trade deficits with Japan by expanding gas exports from Alaska. The major oil and gas reserves in the state are the ones that are closest to Japan. The president also wants to revitalize the state’s economy.
But there appear to be some hurdles for Japan to overcome. It is unclear how purchase prices for gas will be set, or how the length of a contract will be determined. Some observers wonder whether the joint project in Alaska will be able to progress as planned. Others are waiting to see how future talks will proceed.