Alaska
Trump tariffs push Asian trade partners to weigh investing in massive Alaska energy project
Japan, South Korea and Taiwan are considering investing in a massive natural gas project in Alaska in an attempt to reach trade deals that would both satisfy demands from President Donald Trump and avoid high U.S. tariffs on their exports.
Alaska has long sought to build an 800-mile pipeline crossing the state from the North Slope in the Arctic Circle to the Cook Inlet in the south, where gas would be cooled into liquid for export to Asia. The project, with a staggering price tag topping $40 billion, has been stuck on the drawing board for years.
Alaska LNG, as the project is known, is showing new signs of life — with Trump touting the project as a national priority. Treasury Secretary Scott Bessent said earlier this month that the liquified natural gas (LNG) project could play an important role in trade negotiations with South Korea, Japan and Taiwan.
“We are thinking about a big LNG project in Alaska that South Korea, Japan [and] Taiwan are interested in financing and taking a substantial portion of the offtake,” Bessent told reporters on April 9, saying such an agreement would help meet Trump’s goal of reducing the U.S. trade deficit.
Taiwan’s state oil and gas company CPC Corp. signed a letter of intent in March to purchase six million metric tons of gas from Alaska LNG, said Brendan Duval, CEO and founder of Glenfarne Group, the project’s lead developer.
“You can imagine the geopolitical enhancements whether it’s for tariff or military reasons — Taiwan is really, really focused on getting that signed up,” Duval told CNBC in an interview. CPC has also offered to invest directly in Alaska LNG and supply equipment, Duval said.
March trade mission
Duval and Alaska Governor Mike Dunleavy traveled to South Korea and Japan on a trade mission in March, meeting with high-ranking officials in government and industry. Japanese and South Korean companies have asked whether their development banks can help finance Alaska LNG, Duval said.
“Lately, there has been quite a lot of inquiries from India, so there’s a fourth horse that’s entered the race,” Duval said. Thailand and other Asian countries have also shown interest, he said.
The Alaska LNG project has three major pieces: The pipeline, a gas processing plant on the North Slope and a plant to liquify the gas for export at Nikiski, Alaska. These facilities are estimated to cost roughly $12 billion, $10 billion, and $20 billion respectively, Dunleavy said at an energy conference in Houston in March.
The permits for Alaska LNG are already in place, the CEO said. Glenfarne expects to reach a final investment decision in the next six to 12 months on the first phase of the project, a pipeline from the North Slope to Anchorage that will supply gas for domestic consumption in Alaska, Duval said.
Construction on the LNG plant is expected to begin in late 2026, the CEO said. The goal is to complete construction on the entire Alaska LNG project in four and a half years with full commercial operations starting in 2031, he said.
Alaska LNG plans to produce 20 million metric tons of LNG per year, equal to about 23% of the 87 million tons of LNG that the U.S. exported last year, according to data from Kpler, a commodity researcher.
Unleashing Alaskan resources
Alaska plays a central role in Trump’s goal to boost production and exports of U.S. oil and gas, part of the White House’s agenda for U.S. “energy dominance.” The president issued an executive order on his first day in office seeking to tap Alaska’s “extraordinary resource potential,” prioritizing the development of LNG in the state.
“We’ll have that framed on our walls in Alaska for decades,” Gov. Dunleavy said at the Houston conference last month, referring to the executive order.
Once a net importer, the U.S. has rapidly become the largest exporter of LNG in the world, playing an increasingly vital role in fueling power plants in Asia and Europe for allies with limited domestic energy resources. Japan and South Korea, for example, each took about 8% of U.S. LNG exports last year, according to Kpler data.
The Trump administration views Alaska LNG as “an important strategic project,” Interior Secretary Doug Burgum said at the Houston energy conference. LNG exports from Alaska would reach Japan in about eight days rather than having to pass through the congested Panama Canal from terminals on the Gulf Coast, Dunleavy said at the same conference.
“They can have the opportunity to get delivered to them the most efficient LNG from an allied partner,” while avoiding chokepoints, Duval said. “This is the only LNG the U.S. can supply that has a direct route, and they are very cognizant about that in today’s environment.”
North Pacific talks
Trump told reporters during a joint press conference with Japanese Prime Minister Shigeru Ishiba in February that the two countries were discussing the pipeline and the possibility of a joint venture to exploit Alaska oil and gas. Trump said he discussed the “large scale purchase of U.S. LNG” in an April 8 phone call with South Korea’s acting President Han Duck-Soo, and Korea’s participation in a “joint venture in an Alaska pipeline.”
Japan wants to maintain its security agreement with the U.S. against a rising China and avoid tariffs, officials at the Alaska Industrial Development and Export Authority told the Alaska Senate finance committee during a February presentation. “We are now in a completely ‘transactional’ trade world,” the executives said. Tokyo must invest more in the U.S., buy more LNG and enter a joint venture linked to Alaska oil and gas, they said.
The project would likely be a structured as a loose joint venture, with Asian partners signing contracts for large volumes of LNG, Duval said, and won’t necessarily translate into Japan, Taiwan and South Korea holding direct equity stakes in Alaska LNG, though Glenfarne is open to the possibility, he said.
Glenfarne’s goal is to be the long-term owner and operator of Alaska LNG with partners, Duval said. Glenfarne is a privately-held developer, owner and operator of energy infrastructure based in New York City and Houston. The company assumed a 75% stake in Alaska LNG from the Alaska Gasline Development Corporation in March, with AGDC keeping 25%.
Roadblocks and commercial viability
The Trump administration is clearly pressuring Japan, South Korea, and Taiwan to invest in Alaska LNG, said Bob McNally, president of Rapidan Energy and former energy advisor to President George W. Bush. Although Japan wants to both placate Trump and diversify its LNG supplies, Tokyo may yet hesitate to invest in Alaska LNG due to the project’s cost, complexity and risk, McNally said.
Another roadblock is that Democrats could return to power in 2028 and try to stop the project from advancing, citing environmental effects, McNally said. President Joe Biden, after all, paused permits for new LNG exports to countries including Japan that don’t have free trade agreements with the U.S. But Trump reversed Biden’s suspension as part of a torrent of executive orders tied to energy on his first day in office in January.
In addition to political risk, Alaska LNG “doesn’t have a clear cut commercial logic,” said Alex Munton, head of global gas and LNG research at Rapidan. “If it did, it would have had a lot more support than it has thus far, and this project has been on the planning board for literally decades,” Munton said. There are more attractive, existing LNG options for Asian customers on the Gulf Coast, he said.
The project is expensive even by the standards of an LNG industry that builds some of the costliest infrastructure in the energy sector, Munton said. The price tag of more than $40 billion likely needs to be revised upwards given that it is two years old, the analyst said.
“You have to assume that the costs are going to be much higher than the publicly quoted figures,” Munton said. Alaska LNG will likely need “public policy or a public commitment of funds to bring it to life,” the analyst said.
Duval said Alaska LNG will be competitive with no government subsidy. “It is a naturally competitive source of LNG, independent of the geopolitical benefits, independent of the tariff discussions,” he said.
“We have the support of the president of the United States,” Dunleavy said in Houston. “We have Asian allies that need gas. Geopolitical alliances are changing. Tariff questions are coming up. When we really look at it in that context, it’s a very viable project.”
Alaska
Alaska Native villages have few options and little U.S. help as climate change devours their land
Alaska
Opinion: Don’t trade salmon wealth for timber pennies
As the U.S. Forest Service considers the future management of the Tongass National Forest, I hope that Alaska’s congressional delegation will listen to what Southeast Alaskans already know: Wild salmon are one of the Tongass’ most valuable resources. If we leave the trees standing and protect the habitat that fish need, the Tongass will continue to generate billions of dollars in natural dividends, in turn supporting thousands of fishing jobs and providing millions of pounds of nutritious seafood year after year.
Southeast Alaska, where I live and fish, runs on seafood. Seafood is the bedrock of our local economy and supports our intergenerational way of life. The economic output of Southeast’s seafood industry exceeds $800 million annually, accounting for 15% of regional employment, with 4,400 resident commercial fishermen and 2,900 processing jobs across more than 30 coastal communities. Salmon are a key driver of our region’s fishing industry, accounting for more than half of Southeast’s total commercial catch most years while also supporting significant subsistence harvests, tourism and sport fisheries. Salmon keep Southeast’s fishermen employed year-round, which is critical in our rural communities where employment options are limited.
Southeast Alaska’s salmon abundance is not an accident — and it also cannot be taken for granted. Hundreds of intact and diverse watersheds around the region form a complex mosaic of prime salmon habitat. The Tongass’ watersheds, which are globally unique in their water quality and productive capacity, pump out 50 million salmon per year. With the largest tracts of undisturbed coastal temperate rainforest in the world, the Tongass is unmatched in its biological diversity and productivity.
For decades, Southeast Alaska’s communities and fishermen have fought industrial logging in the Tongass. Despite the recorded ecological degradation, dwindling economic return, and growing local opposition, there are a few decision-makers who remain committed to subsidizing industrial timber extraction. We know where that leads. In the Pacific Northwest, industrial logging and road construction have destroyed salmon spawning and rearing habitat. Taxpayers have spent billions of dollars trying to recover local salmon populations through hatcheries and habitat restoration — with limited success. Why would Alaska repeat that mistake, especially when timber, in recent sales, is going for less than the price of a Big Mac at $2 per thousand board feet? Alaska has the chance to get it right, to protect the natural capital that supports our fisheries and sustains our local economies. We can harvest the rewards of bountiful salmon runs and save money on habitat restoration — it’s a win/win.
The harmful impacts of industrial logging on Southeast Alaska’s salmon watersheds and our natural dividends are not hypothetical. The timber industry has caused extensive damage to some of Southeast’s most productive salmon watersheds through decades of old-growth logging and the construction of 5,000 miles of roads around the region. These activities have resulted in barriers to salmon passage, with failed culverts blocking over 240 miles of spawning streams and costing fishermen an estimated $2.5 million per year in forgone catch. Past logging has also driven changes in adjacent areas to stream flow and temperature, sedimentation, water quality, and the risk of landslides and floods. By allowing industrial logging to continue in the Tongass, we are undermining Southeast’s economy and future.
Protecting the Tongass is not a charitable act; it is the most cost-effective way to improve ecosystem productivity and ensure the prosperity and well-being for all who call Southeast home. We need our lawmakers and the Forest Service to prioritize protection of the natural capital that sustains our rural communities and local businesses. Our livelihoods depend on it.
Linda Behnken resides in Sitka, where she has commercial fished for over 40 years. She is the executive director of the Alaska Longline Fishermen’s Association and president of the Alaska Sustainable Fisheries Trust.
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The Anchorage Daily News welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.
Alaska
Opinion: When $100 stays home: Shopping small strengthens Alaska
The holiday season is a time of giving, but for many Alaskans, this season means tightening belts instead. Between rising costs, inflation and the lingering impacts of tariffs and supply chain disruptions, burdens may feel heavier than usual.
That’s exactly why it matters where we spend what we can, keeping dollars local.
This Small Business Saturday, on Nov. 29, the Alaska Small Business Development Center, Anchorage Downtown Partnership, Anchorage Chamber of Commerce, Visit Anchorage and the Small Business Administration are inviting Alaskans to take a small but meaningful step: pledge to spend at least 10% of your holiday gifting with local businesses.
Because in Alaska, sticking together isn’t just something we say, it’s a way of life.
Consider a $100 purchase. If bought from a major online retailer or national chain, about $22 stays in Alaska — mostly covering shipping, logistics and applicable local wages. The rest flows to corporate headquarters, distant warehouses and out-of-state shareholders.
Spend that same $100 at an Alaskan-owned business and about $63 stays here at home. It pays employee salary and benefits, allowing them to save for college or a first home, and to stay and grow their careers here. It supports local manufacturers and artists, suppliers and service providers. It funds youth sports, sponsorships and nonprofit donations. One purchase. Multiple local impacts.
The visible difference is keeping our main streets alive and our neighbors employed.
Buy Alaska: Go local first
We know shopping local isn’t always easy. Prices can feel higher, and options can be harder to find, especially across such a vast state.
That’s why BuyAlaska.com was created. This free online directory connects shoppers with more than 1,200 Alaskan-owned businesses across our great state. You can search by product, service or location, from Utqiagvik to Ketchikan, and discover just how many local options already exist. BuyAlaska also helps businesses find local suppliers through the B2B Exchange, keeping even more money circulating among Alaskans.
The 10% shift
Redirecting just 10% of your regular purchases to Alaska-owned businesses could keep hundreds of millions of dollars in our economy. That money fuels paychecks, keeps doors open and gives small-business owners breathing room to weather rising costs and invest in growth.
Before you click “add to cart,” check BuyAlaska.com. If there’s a local option, choose it. If not, that’s OK, just look for the next opportunity. Every small shift adds up.
Alaska’s entrepreneurs operate in one of the most complex business environments in the country: high shipping costs, unpredictable seasons and supply chains that stretch across oceans. Yet they continue to adapt, innovate and show up for their communities.
They’re not just business owners, they’re our neighbors, parents at the hockey rink, and volunteers at local schools. Nearly 140,000 Alaskans work for small businesses. When they thrive, so does Alaska.
Your economy, your choice
Downtown Anchorage will kick off Small Business Saturday with local deals, community events and the annual Holiday Tree Lighting, a bright start to the season. But the opportunity to support each other extends far beyond one weekend.
Leave a positive review on a small business you frequent. Share your favorite local finds. Take the 10% Challenge and encourage others to do the same.
Our state’s economy grows stronger when we grow together. Every purchase is a vote for the kind of community we want, one that is resilient, connected and uniquely Alaskan.
This Small Business Saturday, and every day, you have the power to help Alaska thrive, one meaningful choice at a time.
Kendra Conroy is acting state director and associate state director, UAA Alaska SBDC.
Gretchen Fauske is director of Special Programs & Strategy, UAA Alaska SBDC.
Radhika Krishna is executive director of the Anchorage Downtown Partnership.
Julie Saupe is president and CEO of Visit Anchorage.
Kathleen McArdle is president and CEO of the Anchorage Chamber of Commerce.
• • •
The Anchorage Daily News welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.
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