As U.S. President Donald Trump touted “the largest trade deal in history” with Japan, he also noted that the United States and Japan are set to conclude another deal to form a joint venture for LNG in Alaska.
“We concluded the one deal … and now we’re going to conclude another one because they’re forming a joint venture with us at, in Alaska, as you know, for the LNG,” President Trump said in comments on the deal to GOP lawmakers at the White House.
“They’re all set to make that deal now,” the president added.
The U.S. has completed what President Trump touted on Truth Social as “a massive Deal with Japan, perhaps the largest Deal ever made.”
Under the trade agreement, Japan’s goods imported in the United States will face a 15% tariff, lower than the 24% proposed in early April and the 25% tariff President Trump proposed earlier this month with effect from August 1.
The trade deal now calls for a 15% tariff on Japanese goods imported in the United States.
However, President Trump’s additional remarks and assurances that the U.S. and Japan will conclude a joint venture deal for LNG in Alaska was not immediately confirmed by Japan.
A Japanese government official at the Ministry of Economy, Trade and Industry (METI) told Reuters that the ministry is working to confirm President Trump’s comments.
Japanese companies have been considering investments in the $44-billion Alaska LNG project, but so far they have appeared to be concerned that the costs may be too high, considering the cold weather in Alaska and the scale of the pipelines needed to bring the project on stream.
Last week, reports emerged that India’s state-controlled natural gas firm GAIL (India) Ltd has started discussions about buying liquefied natural gas from the proposed Alaska LNG project.
Energy companies are ready to commit to buying $115 billion worth of LNG from Alaska once President Trump’s pet energy project gets done, the company in charge of the project, Glenfarne, said last month, noting that as many as 50 companies have expressed formal interest.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
- Chevron Explores Sale of Singapore Refinery Stake
- Equinor’s Earnings Drop on Lower Oil Prices
- TotalEnergies Launches LNG Bunkering JV with Shipping Group
