Japan could import natural gas from Alaska

Alaska turns to Japan following a drop in demand in the USA.

Alaska Senator Lisa Murkowski will visit Japan this week to meet with government officials about natural gas exports as Alaska looks for other markets for its huge supply of natural gas.

The recent discovery of substantial supply of shale gas in the continental USA and its subsequent boom in production has dramatically lowered demand for natural gas from Alaska. The Alaskan government believes that its natural gas could potentially find a huge market across the Pacific Ocean, especially in energy starved Japan that is trying to wean itself from nuclear power.

The Alaskan government believes Japan really have no other resource but natural gas. Alaska is closer to Japan than the continental USA, so it makes sense to ship Alaska’s gas to Japan.

The costs of bringing the natural gas in huge amounts could be a deterrent to producers. Alaska’s high taxes for oil and gas ventures also do not help to attract investors.