NEWS
Japan must reject investment in the risky and uneconomic Alaska LNG project
Photo from Canva
Tokyo, 29th May 2025 – Today, more than 150 groups from Japan and the world sent an open letter to the Japanese Prime Minister urging not to join the costly Alaska LNG projects. This 2nd of June, the US President Donald Trump’s National Energy Dominance Council is planning a summit meeting on the proposed USD 44 billion Alaska LNG project, and it has been reported that the US aims to pressure the leaders of Japan, South Korea, Taiwan, Thailand, India and others to invest in this egregious project.
The hugely uneconomic Alaska LNG Project has failed to get off the ground for decades. Without public funding from Japan or the U.S., the project is not likely to proceed.
Hiroki Osada, Campaigner, Friends of the Earth Japan said “For Japan, Alaska LNG is absolutely unnecessary. Japanese companies resold 37% of LNG they handled, simply because Japan is buying LNG much more than it needs. Starting another new LNG project is already a horrible decision considering this, but it is even more outrageous given it also exacerbates climate change beyond threshold, and destroys the indigenous way of life and the biodiversity in Alaska. It would be hard to convince Japanese people why their public money should be spent to do exactly that, only to please a president who will never be pleased enough.”
“The Trump Administration is trying to sell a plan for Alaska LNG that’s a public burden for U.S. taxpayers,” says Raena Garcia, Senior Energy Campaigner at Friends of the Earth U.S. “For months, President Trump has used bully tactics, dangling Alaska LNG in front of buyers in the Asia Pacific while employing the threat of tariffs. But Trump’s word carries a ‘buyer beware’ with no guarantees – and U.S. taxpayers will likely pay the price.”
Sarah Furman, Fairbanks Climate Action Coalition says “The Alaska LNG Pipeline project is bad economics, bad for the planet and bad for Alaskans. The Trump administration is bullying Alaska and international leaders to invest in a project that lacks long-term economic viability, will slow the necessary transition off of fossil fuels, and cause irreversible harm to the land, people, and animals that call this place home. We will continue to stand against the LNG pipeline – Alaska is not for sale!”
Japan is also actively expanding the LNG market in Asia through investments in import terminals and gas-fired power plants, not for enhancing energy security, but for enabling long-term demand for its LNG exports.
“We’re particularly worried about the Japan Bank for International Cooperation (JBIC) which is one of the largest foreign financiers of gas in Asia and has a track record of funding controversial fossil fuel projects and promoting false solutions such as ammonia and hydrogen co-firing, and carbon capture use and storage technologies. Together with JBIC, Japan’s private financiers, like its megabanks (MUFG, SMBC & Mizuho), are accelerating the region’s descent into the climate crisis,” said Lidy Nacpil, Coordinator of the Asian Peoples’ Movement on Debt and Development and Convener of the Don’t Gas Asia Campaign.“Given the fact that Japan is trying to expand the Asian market to resell its excessive gas, Japan’s continued investment in LNG infrastructure exposes Asian communities to greater climate risks and economic instability. These projects are not just environmentally harmful — they also threaten to become a huge burden for countries with debt and delay a just energy transition.” Nacpil added.
“While LNG export may present short-term economic benefits to some, it represents the risk of being locked into the extremely expensive and dirty energy for decades, and we obviously don’t want that. Local communities near LNG import terminals in Map Ta Phut, Thailand, are already suffering from declining fish catch and loss of livelihood because of the LNG buildout. Japanese finance is a big part of the problem, because JBIC finances gas infrastructures, including gas-fired power plants that are part of this LNG expansion. We urge Japan not to create another example of community-and-climate-destructing LNG projects.” said Manop Sanit, Rayong Clean Energy Coordinator.
“It’s imperative that Japanese leaders reject Trump’s bullying and refuse to bankroll the Alaska LNG project, a decades-old mess that pre-tariff calculations show would cost at least $44 billion to construct. According to the International Energy Agency, already existing LNG capacity has the potential to push us past the key climate tipping points. Continuing to build massive, highly polluting gas projects like Alaska LNG will only create bigger barriers to a clean energy future, energy security, and affordability. For the sake of communities all over the world threatened by climate disaster, Japanese leaders need to resist Trump’s efforts to strong-arm them into investing in Alaska LNG and all risky, uneconomic U.S. LNG projects.” says Allie Rosenbluth, U.S. Campaign Manager, Oil Change International.
Japan must reject investment in the risky and uneconomic Alaska LNG project
To:
Mr. Ishiba Shigeru, Prime Minister of Japan
Mr. Muto Yoji, Minister of Economy, Trade, and Industry of Japan (METI)
Mr. Akazawa Ryosei, Minister in charge of Economic Revitalization of Japan
Japan must reject investment in the risky and uneconomic Alaska LNG project
We are 153 groups from Japan and around the world concerned with the environmental crisis and the economy. This early June, the US President Donald Trump’s National Energy Dominance Council is planning a summit meeting on the proposed USD 44 billion Alaska LNG project, and it has been reported that the US’s aim is to pressure the leaders of Japan, South Korea, Taiwan, Thailand, India and others to invest in this egregious project[1]. Investing in this costly and climate-wrecking project will harm local communities, the environment and the planet, and poses a serious economic burden for the Japanese economy. We request that the Japanese leaders refuse support for the project.
White elephant project has faced decades-long delays
The Alaska LNG project would transport gas from the North Slope fields via a 1,300km pipeline for domestic use and for export to Asia. The hugely uneconomic Alaska LNG Project has failed to get off the ground for decades. The project has been kept afloat by the State of Alaska and the state-backed entity, Alaska Gasline Development Corporation (AGDC). The budget of the project has fluctuated dramatically over the last 15 years, and current cost estimates are at least $44 billion[2]. These costs would likely skyrocket due to increased construction costs and tariffs on imported steel.[3]
There are clear reservations among industry leaders even though there is a strong political push by the Trump administration. In March, Japan Gas Association Chair and CEO of Tokyo Gas, Takeshi Uchida, said that Alaska LNG would be “twice the cost of conventional LNG development.[4]” Potential buyers, including Japanese and Korean companies, have expressed strong doubts about its economic feasibility and have refused to participate in the project for years[5]. Without subsidization from Japan or the U.S. the project will not likely move forward.
Moreover, Japan is facing surplus issues and does not need additional LNG. In Japan, almost 40% of the LNG handled by Japanese companies is resold overseas[6]. Demand for LNG is also weakening in Korea[7]. The project will not start until 2030 at the earliest. For several months, President Trump has been bullying overseas buyers in Asia, seeking to use potential commitments to Alaska LNG as a way to prevent tariffs. Japan, Taiwan, and Korea, among others, have responded by issuing statements of interest for LNG coming out of Alaska. It is very risky and damaging for Asian buyers to use LNG as a card for the deal. It would lock buyers in Asia into contracts that require them to purchase this overpriced gas for decades, while renewable energy gets much cheaper.
There is no demonstrable economic benefit to Japan or neighboring countries in supporting this high-cost project. The project’s viability appears contingent on Japanese public finance. Yet, such support would disproportionately benefit a narrow set of interests, rather than delivering value to Japanese industries or consumers across Asia.
The project will harm the community and the environment
Not only the financial cost, but environmental and social costs of the project will be enormous.
According to EarthJustice, the project would be capable of exporting 20 million metric tons of gas per year — a quantity that could result in over 50 million metric tons of carbon dioxide pollution emissions annually[8]. In the report published in 2023 by the International Energy Agency titled “Net Zero Roadmap: A Global Pathway to keep the 1.5°C Goal in Reach[9]”, the report reiterated the conclusion of the 2021 report that in order to achieve net-zero greenhouse gas emissions by 2050, there is no room for developing new fossil fuel extraction projects. Clearly, there is no room for the Alaska LNG to be developed.
Additionally, the North Slope, which is the natural gas drilling site for the project, is located near the Arctic National Wildlife Refuge (ANWR), a traditional living area of the indigenous Gwich’in people and one of the most pristine areas with diverse wildlife including polar bears facing extinction. Gas extraction in this region risks serious human rights violations and environmental damage[10]. The gas would be exported to Asian markets from a marine terminal on the eastern shore of the Cook Inlet in Nikiski. Cook Inlet, a sensitive water body that offers critical habitat for endangered beluga whales, could see large vessel traffic increase by nearly 75%[11].
The Arctic continues to warm at a faster rate than the global average[12], and the state is on the verge of even more catastrophic change due to warming. Alaska’s salmon are also severely affected at every stage of life by climate change[13]. The tens of thousands of Alaskans who depend on fishing for income and subsistence are immediately threatened by the carbon emissions that LNG projects lock in[14].
Several major banks, including HSBC[15] and RBC[16], have policies that restrict drilling in the Arctic area for climate and environmental concerns. Japanese non-life insurers – Tokio Marine, SOMPO, and MS&AD also have policies restricting new underwriting and investment in oil and gas extraction projects in the Arctic; the North Slope is also excluded from their underwriting[17].
It is clear that the Alaska LNG project would bring catastrophic impacts to both local communities and the planet.
Japan must say no to Alaska LNG for people and planet
Japan is facing a pivotal decision. They must decide whether to invest in the risky, uneconomic Alaska LNG project promoted by President Trump or instead invest precious resources in renewables and safeguard our communities and our climate. Investing in more LNG will worsen the climate crisis and saddle the public with risks. We urge Japanese leaders, private financiers, and companies to say no to the Alaska LNG project and put this economic boondoggle to rest once and for all.
CC:
Mr. Hayashi Nobumitsu, Governor of Japan Bank for International Cooperation (JBIC)
Mr. Kuroda Atsuo, Chairman & CEO of Nippon Export and Investment Insurance
Mr. Takahara Ichiro, Chairman & CEO of Japan Oil, Gas and Metals National Corporation (JOGMEC)
Mr. Ueda Takayuki, President & CEO of INPEX
Mr. Okuda Hisahide, President, CEO and COO of JERA
Mr. Sasayama Shinichi, President & CEO of Tokyo Gas
Mr. Nakanishi Katsuya, President & CEO of Mitsubishi Corporation
Mr. Hori Kenichi, President & CEO of Mitsui & Co.
Mr. Kamezawa Hironori, President & CEO of Mitsubishi UFJ Financial Group (MUFG)
Mr. Kihara Masahiro, President & CEO of Mizuho Financial Group
Mr. Nakashima Toru, President & CEO of Sumitomo Mitsui Banking Corporation (SMBC)
Signatories
| FoE Japan | Japan |
| Kiko Network | Japan |
| Mekong Watch | Japan |
| Japan Center for a Sustainable Environment and Society (JACSES) | Japan |
| 350.org Japan | Japan |
| Japan NGO Center for International Cooperation (JANIC) | Japan |
| Pacific Asia Resource Center (PARC) | Japan |
| Rainforest Action Network | Global |
| Growthwatch | India |
| Indian Social Action Forum | India |
| PMCJ | Philippines |
| Coastal Livelihood and Environmental Action Network (CLEAN) | Bangladesh |
| For a Better Bayou | USA |
| Vessel Project of Louisiana | United States |
| Chachoengsao REPower | Thailand |
| South Durban Community Environmental Alliance | South Africa |
| Trend Asia | Indonesia |
| WALHI | Indonesia |
| Urgewald | Germany |
| Senik Centre Asia | Indonesia |
| Andy Gheorghiu Consulting | Germany |
| Rhizoma | Indonesia |
| JA!Justica Ambiental | Mozambique |
| Africa Just Transition Network | Ghana |
| Oilfield Witness | United States |
| Mothers Rise Up | UK |
| Habitat Recovery Project | United States |
| Mossville Environmental Action Now MEAN | United States |
| Jubilee Australia Research Centre | Australia |
| FoE India | India |
| Pakistan Fisherfolk Forum | Pakistan |
| Friends of the Earth U.S. | U.S. |
| Turtle Island Restoration Network | USA |
| SAVE MY WORLD | Republic Democratic of the Congo |
| Earth Ethics, Inc. | United States |
| Indigenous Environmental Network | USA |
| Friends of the Earth Melbourne | Australia |
| Sahabat Alam Malaysia (Friends of the Earth Malaysia) | Malaysia |
| Corporate Europe Observatory (CEO) | EU |
| Otros Mundos Chiapas | México |
| Zero Hour | United States |
| MAUSAM Movement for Advancing Understanding of Sustainability And Mutuality | India |
| Project SEVANA South-East Asia | regional |
| Laos Dam Investment Monitor (LDIM) | Thailand |
| ETOs Watch Coalition | Thailand |
| Community Resource Centre | Thailand |
| KRuHA (People’s Coalition for the Right to Water) | Indonesia |
| The Mekong Butterfly | Thailand |
| People of Asia for Climate Solutions | the Philippines |
| Asian Peoples” Movement on Debt and Development (APMDD) | Regional |
| Asian Energy Network (AEN) | Regional |
| AEER (Action for Ecology and People Emancipation) | Indonesia |
| Minoritech | Japan |
| Corner House | United Kingdom |
| Pro Public | Nepal |
| Friends of the Earth England Wales and Northern Ireland | England Wales and Northern Ireland |
| Friends of the Earth Europe | Belgium |
| 350 Bay Area Action | United States |
| Resource Renewal Institute | United States |
| North American Climate, Conservation and Environment(NACCE) | United States |
| International Marine Mammal Project of Earth Island Institute | USA (global in scope) |
| St Andrews Presbyterian Earth Care Team | USA |
| Occupy Bergen County | United States of America |
| MoveOn.org HobokenRESIST! | USA |
| Unitarian Universalists for a Just Economic Community | USA |
| 350 Hawaii | US |
| SEM spirit in education movement | Thailand |
| Friends of the Earth Australia | Australia |
| Taiwan Climate Action Network | Taiwan |
| Clean Energy Action | USA |
| Empower Our Future | USA |
| Dream Tan | USA |
| NTS Group | USA |
| Greenpeace Thailand | Thailand |
| Friends of the Earth Malta | Malta |
| 350.org | US |
| 350 Asia | Indonesia |
| South Asian Solidarity Collective | India |
| Between the Waters | United States |
| Hip Hop Caucus | USA |
| Climate Conversation Brazoria County | United States |
| Chesapeake Climate Action Network | United States |
| Climate Defenders | US |
| Protect Our Water, Heritage, Rights | USA |
| Concerned Health Providers of Pennsylvania | United States |
| Better Path Coalition | US |
| 198 methods | USA |
| Michigan Clinicians for Climate Action | USA |
| Unitarian Universalists for a Just Economic Community | USA |
| Oil Change International | International / US |
| GreenFaith | USA |
| Indivisible ADK/Saratoga | United States |
| San Francisco Bay Physicians for Social Responsibility | US |
| Cook Inletkeeper | USA |
| Progressive Democrats of America (PDA) | USA |
| Move Past Plastic (MPP) | United States |
| Project Outreach: Frac Sand Sentinel | United States |
| Animals Are Sentient Beings, Inc. | USA |
| Ocean Conservation Research | USA |
| Third Act | USA |
| Greater New Orleans Interfaith Climate Coalition | USA |
| Putnam Progressived | U.S.A. |
| Sovereign Iñupiat for a Living Arctic (SILA) | United States |
| Inclusive Louisiana | USA |
| Climate Reality Project Greater New Orleans Chapter | USA |
| Concerned Citizens of St. John | USA |
| Louisiana League of Conscious Voters | USA |
| 350 New Orleans | USA |
| A Community Voice | USA |
| Fairbanks Climate Action Coalition | United States of America |
| 350 Silicon Valley | USA |
| Indivisible | United States |
| North Country Earth Action | US |
| 1000 Grandmothers for Future Generations | USA |
| NEPA Green Coalition | USA |
| 350 Seattle | United States |
| Stand.earth | US & Canada |
| Physicians for Social Responsibility- – New York | United States |
| Alaska Community Action on Toxics | USA |
| Finkinc | United States |
| Connecticut Citizen Action Group | US |
| Spirit of the Sun | United States |
| System Change Not Climate Change | Canada / Mexico / United States |
| Unite North Metro Denver | United States |
| Womxn from the Mountain | United States |
| Western Slope Businesses for a Livable Climate | United States |
| Wall of Women | United States |
| Working for Racial Equity | United States |
| Small Business Alliance | United States |
| Southwest Organization for Sustainability | United States |
| North Range Concerned Citizens | United States |
| RapidShift Network | United States |
| Our Sacred Earth | United States |
| Save the U.S. Environmental Protection Agency | United States |
| Call to Action Colorado | United States |
| CatholicNetwork US | United States |
| Businesses for a Livable Climate | United States |
| Accelerate Neighborhood Climate Action | United States |
| Greater New Orleans Housing Alliance | United States |
| Green House Connection Center | United States |
| Community for Sustainable Energy | United States |
| Colorado Businesses for a Livable Climate | United States |
| Littleton Business Alliance | United States |
| Indivisible Ambassadors | United States |
| Larimer Alliance for Health, Safety, & Environment | United States |
| Interstate 70 Citizens Advisory Group | United States |
| Mind’s Eye Productions | United States |
| Montbello Neighborhood Improvement Association | United States |
| Mayfair Park Neighborhood Association | United States |
| Mental Health & Inclusion Ministries | United States |
| EarthRights International | International |
| Indus Consortium from Pakistan | Pakistan |
| Legal Rights and Natural Resources Center – Friends of the Earth Philippines | Philippines |
| Social Eco Education | US |
Footnotes
[1] US plans Alaska LNG summit, will urge Japan, South Korea to support project, April 26, 2025, Reuters
[2] Alaska’s pipe dream: The economic folly of the North Slope gasline, January 23, 2025, Pacific Environment
[3] Prices, not politics, will shape U.S. LNG flows to Japan going forward, February 27, 2025, IEEFA
[4] Japan gas industry head says higher US LNG imports must be mutually beneficial, March 19, 2025, Reuters
[5] Wall Street Journal: Limited interest in Alaska LNG from Asian buyers, August 28, 2023, Alaska Public Media
[6] Results of the FY2024 Surveys: LNG Handling Volume and Destination Restrictions in SPAs by Japanese Companies,November 18, 2024, JOGMEC
[7] South Korea scrapping mega-scale LNG terminal projects amid weakening demand, overinvestment risks, August 01, 2024, IEEFA
[8] Alaska LNG Project EarthJustice (accessed on May,22,2025)
[9] Net Zero Roadmap: A Global Pathway to Keep the 1.5 °C Goal in Reach, September 2023, IEA
[10] see footnote 8
[11] see footnote 8
[12] Arctic Report Card: Update for 2024, 2024, NOAA
[13] Chinook salmon declines related to changes in freshwater conditions, Jul 13, 2020, Cook Inletkeeper
[14] Japan must resist Trump’s Alaska LNG pet project, May 12, 2025, Ben Boettger and Susanne Wong
[15] HSBC to stop financing most new coal plants, oil sands, arctic drilling, April 20, 2018, Reuters
[16] Policy Guidelines for Sensitive Sectors and Activities, RBC
[17] Unfeasible; the promotion of the Alaska LNG development agreed at the Japan-US Summit, February 20, 2025,