JERA, Japan's top power generator, may consider Alaska as a potential source of LNG supply, an executive said on April 28, as Japanese officials head to the U.S. this week for another round of tariff talks.

Alaska LNG, a proposed $44 billion project consisting of a pipeline and an LNG plant, has been a key part of President Donald Trump's agenda in dealing with Asian partners, as he wants Japan, South Korea and Taiwan to back the massive project.

"From the perspective of energy security and supply stability... we would like to consider Alaska as one of the promising suppliers, among various other options," JERA Executive Naohiro Maekawa told a briefing on April 28.

Trump has hit Japan with 24% tariffs on its exports to the U.S., but, like most of his levies, they have been paused until early July to allow room for negotiations. A 10% universal rate remains in place, as does a 25% duty on cars, a mainstay of Japan's export-heavy economy.

Japan's trade negotiator Ryosei Akazawa is set to hold another round of tariff negotiations with U.S. officials later this week.

JERA is Japan's top LNG buyer with annual volumes of around 35 million metric tons, and Japan is the world's second biggest LNG buyer after China, with Australia as its top supplier.

"Asia-Oceania currently accounts for more than half of our procurement sources. For supply stability, expanding options to regions like North America and the Middle East would be beneficial," said JERA's Maekawa.

Maekawa emphasized the need for further portfolio diversification. JERA sources about 10% of its LNG from the U.S.

A source familiar with the matter told Reuters last week that Trump's energy security council plans to host a summit in Alaska in early June, when it hopes Japan and South Korea will announce commitments to the Alaska LNG project.

Japanese companies remain cautious of making firm commitments due to high construction costs and lack of specific project details, according to two industry sources.

Taku Minami, CFO of Tokyo Gas, another major Japanese LNG buyer, said on April 28 Alaska LNG could benefit from its geographical proximity to Japan and the absence of canals or straits for safe transportation, though the development cost, including of the long pipeline, remains unclear.

Profit halves

On April 28, JERA said its annual net profit halved, hurt by a weaker performance from its overseas power generation and renewable energy business.

Net income for the year ended March came in at 184 billion yen (US$1.3 billion), but the company expects profit to rebound in the current year to 230 billion yen.

JERA's spot LNG procurement in the 2024/2025 fiscal year was about 5 million tons (MMton), up from 4.5 MMton a year earlier, the company said.

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