On February 8, 2025, United States Senator and former Ambassador to Japan Bill Hagerty stated that the energy cooperation between the US and Japan in liquefied natural gas serves as a counterbalance to Beijing’s Belt and Road Initiative.
During a speech at the Hudson Institute on Thursday, February 6, the Republican from Tennessee expressed, “I believe energy security presents a tremendous opportunity for both of our countries.” Hagerty disclosed that he had engaged in extensive discussions on this topic with President Trump.
Hagerty anticipates that Japanese companies will invest billions of dollars in liquefied natural gas terminals in both the US and Japan, with Japanese trading companies leveraging their commercial networks to sell natural gas in Southeast Asia.
According to Reuters, sources familiar with the matter revealed that Japan is considering supporting a natural gas pipeline project in Alaska to maintain US-Japan relations and avoid potential trade frictions.
While Japanese officials are skeptical about the feasibility of the proposed 800-mile pipeline in Alaska due to higher overall costs compared to other sources, they are willing to explore this potential deal if it is brought up during the US-Japan summit on Friday, February 7.
Hagerty, who is well-versed in the Japanese economy as a former ambassador, highlighted Japan’s capabilities, financing potential, and technological expertise in constructing related terminal facilities. He also mentioned the possibility of South Korean companies participating in the cooperation.
“We have the opportunity to significantly replace Russian liquefied natural gas with American liquefied natural gas,” he remarked.
Senator Hagerty explicitly stated that this move is a counterbalance to China’s Belt and Road Initiative.
“If we can provide clean American liquefied natural gas to Southeast Asia for sustained energy supply, how helpful would that be?” he questioned. “This is much more potent than certain state-owned infrastructure… which often collapse within a few years due to poor construction quality or financial difficulties.”
Hagerty emphasized that the cooperation proposal put forth by the US would be a better and stronger solution, and also hold greater geopolitical significance.
On January 20, President Trump issued an executive order on his first day in office, pledging to roll back environmental restrictions on natural gas development imposed by the Biden administration.
In a recent report by the Hudson Institute, it was stated that “Japan occupies a particularly advantageous position in the liquefied natural gas ecosystem,” which can aid the US in supplying natural gas to Southeast Asian countries.
The report highlights that Japanese companies own the most vessels globally, are the largest builders of liquefied natural gas plants, the largest private financiers of liquefied natural gas, hold the most liquefied natural gas contracts worldwide, and are the largest suppliers of gas turbines.
Hagerty mentioned that energy exports extend beyond Alaska, including states like Louisiana and Texas.
On the 5th, Alaska Senator Dan Sullivan publicly urged Japan and other US Asian allies to support Alaska’s natural gas pipeline project.
He mentioned that he would not be surprised if President Trump mentioned Alaska’s $44 billion natural gas pipeline project when meeting with Japanese Prime Minister Shoshi Matsu on Friday at the White House.
At the same time, Dan Sullivan warned that if Japan is not interested in purchasing American natural gas, strategic competitors like communist China may express interest, but he stated, “That’s not what I want. I want to stand with our allies.”