Nikkei commentary reinforces the establishment narrative
Trump, Alaska LNG, and Energy Security
A commentary in the Nihon Keizai Shimbun (Nikkei) caught my eye. The English translation of its title would be something like “For an LNG cooperation that benefits Japan and the US.”
In my mind, a commentary or an opinion piece should do one of the following:
Add an insightful perspective to an issue of public interest
Explain and clarify a complex or confusing topic
Offer recommendations for those with political and economic power
Shed light on an issue, trend, or consideration that is not receiving as much attention as it should
(If the author is the center of a public controversy) offer a rebuttal to allegations or misunderstandings
Judged by these criteria, the Nikkei commentary is wholly unremarkable. It does none of the things above. Instead, it reads like the talking points of a Ministry of Economy, Trade, and Industry (METI) official on energy security and the possibility of buying more US LNG, which was one of the agreements that came out of the recent meeting between Prime Minister Ishiba and President Trump in Washington.
But then it occurred to me that the piece is remarkable because it crystalizes the energy establishment’s position on the matter. Grasping the government’s and energy companies’ positions on a given policy issue can be challenging. But here, thankfully, the Nikkei is playing the role of the bureaucracy’s mouthpiece to deliver a concise summary of what energy policymakers and industry players are thinking about the anticipated US-Japan LNG cooperation.
A couple of quotes to give you a flavor:
The United States is the world's largest LNG exporter. Expanding imports from the United States is expected to strengthen Japan's energy security. It is hoped that energy cooperation between Japan and the United States will lead to a deeper alliance and become a stepping stone to bring stability to the Asian LNG market.
On expanding into the Southeast Asia market, it says:
It is also important for Japan and the United States to work together to support the introduction of LNG in Southeast Asia, where LNG use is expanding.
Then, it touches on the touchy subject of the Alaska LNG. Trump and Alaskan politicians would love to see this project built with Japanese investments and demand. The Japanese government is leaning toward saying “yes” to be in Trump’s good graces. Japanese companies, on the other hand, have so far remained non-committal because of the project’s expected high cost.
The Nikkei piece covers the pro and the con of the Alaska LNG project. The pro is the project’s proximity to Japan:
President Trump said they also discussed cooperation on an LNG production project in Alaska. It takes about a month to transport LNG from the Gulf Coast, where LNG plants are located, to Japan, but the time it takes to transport it from Alaska can be significantly reduced.
But then, the cost:
However, the plan calls for transporting natural gas produced in the northern tip of Alaska via long-distance pipeline to the Pacific coast in the south of the state, where it will be liquefied. If construction costs increase, LNG will become more expensive.
If you thought the piece will offer a clever way out of this conundrum, you’d be disappointed. “It is important to calmly assess the economic feasibility of the project in order to move forward,” it says.
In the end, the essay closes with a call for balance, mutual benefit, and energy diversification:
Energy cooperation with the United States is an opportunity, but it must be mutually beneficial. Excessive reliance on the United States should also be avoided. If there is a change in administration, energy and climate change policies may be reviewed. What is important is a balanced diversification of procurement sources, including other supplier countries such as Australia and the Middle East.
Very diplomatic. Very establishment. But again, it’s refreshing to see the establishment narrative laid bare.
By the way, Japan just submitted its revised climate target to the UN. The government also finalized the 7th Strategic Energy Plan. More on these soon.