Japan hires Wood Mackenzie to assess $44 billion Alaska gas pipeline project
Japan has hired Wood Mackenzie to evaluate the proposed $44 billion Alaska gas pipeline and liquefied natural gas (LNG) project, signalling renewed interest in a development long championed by US President Donald Trump. The move suggests Tokyo is weighing deeper energy cooperation with Washington as it looks to secure stable gas supplies.
The Alaska LNG project is among the most ambitious energy infrastructure ventures ever proposed in the United States. The plan calls for a 1,300-kilometre pipeline stretching from Alaska’s North Slope to the state’s southern coast, where gas would be processed and chilled for export as LNG.
Backed by the Alaska Gasline Development Corporation (AGDC) and US developer Glenfarne Group, the project aims to unlock Alaska’s vast but isolated gas reserves. Despite decades of planning, high costs and complex logistics have repeatedly stalled progress, leaving successive US administrations searching for investors and international partners.
Japan’s strategic interest
Japan’s commissioning of the study reflects its growing interest in the project’s potential as a new, politically secure source of LNG. During recent US–Japan trade discussions, Tokyo agreed to explore a possible offtake agreement for Alaskan gas and pledged up to $550 billion in investments across US sectors including energy and pipelines.
Japan is the world’s second-largest LNG importer and a major investor in energy infrastructure. Currently, it sources about 10% of its LNG from the United States, similar amounts from Russia and the Middle East, and roughly 40% from Australia. For Tokyo, Alaskan gas represents not only diversification but also a shorter, safer shipping route that avoids chokepoints such as the Straits of Hormuz and Malacca.
Developers have held talks with several Japanese energy firms, including JERA (Japan’s biggest LNG buyer) as well as Tokyo Gas, Osaka Gas, Mitsubishi Corporation and Inpex. Some companies have described the project as “under consideration,” though concerns remain that high construction costs could make Alaskan LNG less competitive than other supply options.
Wood Mackenzie brought in
To gain detailed insight in the pros and cons of the Alaska LNG project, the government has asked global energy consultancy Wood Mackenzie to conduct an independent commercial and technical assessment, analysing its cost competitiveness, market outlook, and infrastructure feasibility – with a focus on Japan’s interests.
The findings are expected to help Tokyo and Japanese investors decide whether to participate.
The consultancy has studied the project several times before. A 2016 review judged it less competitive than rival LNG ventures serving Asia, but an updated 2022 analysis – factoring in revised financing models and cost reductions – found it potentially on par with US Gulf Coast exports.
A favourable outcome from Wood Mackenzie’s review could open the door to financing from Japan’s state-backed Japan Bank for International Cooperation (JBIC) and secure Tokyo’s position as a key partner.
