During Trump’s Japan visit, Prime Minister Takaichi must avoid doubling down on risky LNG deals

President Trump will visit Japan between October 27-29. He is expected to meet with the new Japanese Prime Minister, Sanae Takaichi, to discuss Japanese investments in U.S. liquefied natural gas (LNG) projects, among other topics. Trump may continue to pressure Japan to invest in the impractical, uneconomic $44 billion Alaska LNG project in addition to projects across the U.S. Gulf Coast. 

Susanne Wong, Asia Program Manager at Oil Change International, said: 

“During Trump’s visit to Japan, Prime Minister Takaichi has the opportunity to chart a new course on energy. Instead of bowing to the Trump administration’s bullying, as her unpopular predecessor did, she can choose to stop wasting Japan’s public money on risky, destructive U.S. LNG projects that undermine Japan’s energy security. 

“Since July, when former Prime Minister Ishiba made a handshake deal with the Trump administration to invest $550 billion into American pet projects, including LNG, it’s become even clearer that U.S. LNG is financially risky [1]. 

“Investments in U.S. LNG are also a bad deal for our climate and communities. According to the International Energy Agency, expanding LNG production is incompatible with avoiding catastrophic climate change. LNG projects also threaten the health, safety, and livelihoods of the communities living alongside them, who face elevated rates of cancer, asthma, and other respiratory diseases.

“U.S. LNG means dependence, volatility, and instability for Japan. A just transition to renewables means energy independence, security, affordability, and a liveable planet for all. New research from the International Energy Agency shows that by investing in renewable energy, over 100 countries have slashed their dependence on imported fuels, while saving a cumulative $1.3 trillion dollars and protecting our climate. Prime Minister Takaichi must make the right choice for Japan and the rest of the world.” 

Sarah Furman, Executive Director of Fairbanks Climate Action Coalition in Alaska, said:

“Japan knows that Alaska LNG is a bad investment — bad economics, bad for the climate, and bad for local communities. That’s why it has resisted investing in this project.

“But the same holds true for every other LNG project. We urge Japan not to invest in any of these projects, which will push us beyond the emissions goals set by the Paris Climate Accords. Japan must act to prevent further harm to the climate and frontline communities.”

Note to the editor:

[1]

• In July, Chiyoda, one of the largest LNG and petrochemical engineering companies in the world, announced that it would no longer build large U.S. LNG projects after being driven into debt by U.S. LNG projects Cameron and Golden Pass.
• On Oct. 10, shares of major U.S. LNG company Venture Global, plunged nearly 25% after a court ruled it could be held responsible for more than $1 billion in damages related to delays in shipping LNG from its Calcasieu Pass terminal. The company may be on the hook for a total of $4.8 billion in damages from similar disputes, threatening Japan’s reputation and its ability to recoup its investments in the troubled company’s projects. 
• Total Energies CEO Patrick Pouyanné has publicly stated he doesn’t believe Venture Global is a trustworthy company. Venture Global is also under public scrutiny for a dredging accident related to construction of its Calcasieu Pass 2 terminal that is devastating the local fishing economy in Cameron, Louisiana. 
• Between October 7 and October 22, three major LNG projects – Commonwealth, Lake Charles LNG, and Cameron LNG – announced that they were facing construction delays. Commonwealth LNG was forced to pause construction after courts vacated a key permit.