Alberta, Canada's energy-rich province, is actively courting Japan as a key export market for its liquefied natural gas (LNG), driven by concerns over potential U.S. tariffs and a growing competition for Asian energy demand. Rebecca Schulz, Alberta's Minister of Environment and Protected Areas, emphasized the need for export diversification during a recent visit to Tokyo, highlighting Japan as a crucial partner.

Schulz's trip included meetings with key players in the Japanese energy sector, including JERA, the country's largest LNG importer, JOGMEC, the Japan Oil, Gas and Metals National Corporation, the Japan Gas Association, and representatives from Tokyo Gas. The discussions focused on the shared priorities of energy security and meeting growing global energy demands. "Energy security is a hugely important focus for many countries, including Japan and Canada," Schulz stated, underscoring the strategic alignment between the two nations.

Alberta's intensified focus on Japan comes as the shadow of potential U.S. tariffs looms. While the specific nature of these potential tariffs remains unclear, the Alberta government is proactively seeking alternative markets to mitigate any potential disruptions to its energy exports.

The competition for supplying LNG to Japan is heating up, with the United States actively promoting its proposed Alaska LNG project. U.S. Senator Dan Sullivan recently urged Japan and other Asian allies to support the Alaska initiative, citing the potential for China to become the primary beneficiary if these nations decline. The upcoming meeting between the US and Japan is expected to feature discussions about Alaska LNG project.

Despite the competitive landscape, Alberta is confident in its ability to offer a compelling alternative to Japanese buyers. Minister Schulz pointed to several key advantages, including significantly shorter shipping times to Japan compared to the U.S. Gulf Coast, minimizing transportation costs and delivery timelines. She also emphasized the reduced geopolitical risks associated with Canadian LNG exports.

Canada is already poised to begin LNG exports to Japan later this year through the LNG Canada project, in which Mitsubishi holds a stake. However, Alberta is looking beyond this initial step, with plans to significantly expand its export capacity. Schulz mentioned several ongoing projects aimed at increasing market capacity. "There are a number of projects that are being worked on. four or five for additional market capacity," she said.

The dynamic nature of Japan's energy market also plays into Alberta's favor. While overall LNG demand in Japan has seen some decline, there's potential for increased needs if the country's renewable energy transition faces any setbacks.