Mitsubishi mulling Alaska LNG project investment, CEO says
Japanese trading house says careful study is needed before deciding on the project
03 April 2025 - 14:44
byYuka Obayashi and Kiyoshi Takenaka
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Tokyo — Japanese trading house Mitsubishi Corporation may consider investing in an LNG project in Alaska, though any decision will require careful review, CEO Katsuya Nakanishi said on Thursday.
An Alaskan delegation visited Japan last week to brief policymakers and meet possible backers of the $44bn natural gas project in the US state, which is part of President Donald Trump’s push to boost US gas exports.
“We have been approached and are considering it,” Nakanishi told reporters when asked about possible participation in the LNG project.
“However, we need to conduct thorough due diligence,” he said, noting that this project has been proposed many times in the past and is not new to the Trump administration.
Mitsubishi plans to carefully evaluate its feasibility, considering factors such as the 1,300km distance to the West coast, the need to build liquefaction facilities and future LNG demand in Southeast Asia and other regions.
According to Alaskan officials, the project is likely to attract US investors for most of the pipeline part, while any equity from Japan or other Asian buyers is likely to be tied to offtake from the liquefaction plant that will prepare the gas for export.
Trump on Wednesday announced a 10% tariff on most goods imported to the US, as well as much higher levies on dozens of rivals and allies, including Japan. Nakanishi said that there could be opportunities brought by the tariffs too but the company would carefully evaluate the risks as well.
On Thursday, Mitsubishi said it planned to invest at least ¥4-trillion ($27bn) over the next three years to drive growth and aimed to lift its net profit to ¥1.2-trillion in the 2027/28 financial year.
Unveiling its new three-year management strategy starting this month, Mitsubishi also said it would maintain its basic policy of progressive dividends and flexible share buybacks, including a plan to buy back up to ¥1-trillion of its own shares from April 4 to March 31 2026.
Over the three-year period, Mitsubishi plans to allocate about ¥1-trillion to sustaining capital expenditure and more than ¥3-trillion to growth investments.
In a scenario where it had excess cash, the company would evaluate the allocation of those funds to investments or additional shareholder returns after considering its investment pipeline and other factors, it said in a statement.
In February, Mitsubishi, which took a ¥52.2bn impairment charge on its domestic offshore wind projects in the nine-month period to end-December, forecast a net profit of ¥950bn for the year that ended March 31.
Nakanishi said that the company hoped to reach a conclusion on its domestic offshore wind projects around this summer, without providing other details.
For the year that began in April, Mitsubishi predicted its net profit would fall to ¥700bn, but it would boost its dividend by ¥10-¥110 per share.
US investor Warren Buffett’s Berkshire Hathaway is among the largest Mitsubishi shareholders, holding a 9.67% stake.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Mitsubishi mulling Alaska LNG project investment, CEO says
Japanese trading house says careful study is needed before deciding on the project
Tokyo — Japanese trading house Mitsubishi Corporation may consider investing in an LNG project in Alaska, though any decision will require careful review, CEO Katsuya Nakanishi said on Thursday.
An Alaskan delegation visited Japan last week to brief policymakers and meet possible backers of the $44bn natural gas project in the US state, which is part of President Donald Trump’s push to boost US gas exports.
“We have been approached and are considering it,” Nakanishi told reporters when asked about possible participation in the LNG project.
“However, we need to conduct thorough due diligence,” he said, noting that this project has been proposed many times in the past and is not new to the Trump administration.
Mitsubishi plans to carefully evaluate its feasibility, considering factors such as the 1,300km distance to the West coast, the need to build liquefaction facilities and future LNG demand in Southeast Asia and other regions.
According to Alaskan officials, the project is likely to attract US investors for most of the pipeline part, while any equity from Japan or other Asian buyers is likely to be tied to offtake from the liquefaction plant that will prepare the gas for export.
Trump on Wednesday announced a 10% tariff on most goods imported to the US, as well as much higher levies on dozens of rivals and allies, including Japan. Nakanishi said that there could be opportunities brought by the tariffs too but the company would carefully evaluate the risks as well.
On Thursday, Mitsubishi said it planned to invest at least ¥4-trillion ($27bn) over the next three years to drive growth and aimed to lift its net profit to ¥1.2-trillion in the 2027/28 financial year.
Unveiling its new three-year management strategy starting this month, Mitsubishi also said it would maintain its basic policy of progressive dividends and flexible share buybacks, including a plan to buy back up to ¥1-trillion of its own shares from April 4 to March 31 2026.
Over the three-year period, Mitsubishi plans to allocate about ¥1-trillion to sustaining capital expenditure and more than ¥3-trillion to growth investments.
In a scenario where it had excess cash, the company would evaluate the allocation of those funds to investments or additional shareholder returns after considering its investment pipeline and other factors, it said in a statement.
In February, Mitsubishi, which took a ¥52.2bn impairment charge on its domestic offshore wind projects in the nine-month period to end-December, forecast a net profit of ¥950bn for the year that ended March 31.
Nakanishi said that the company hoped to reach a conclusion on its domestic offshore wind projects around this summer, without providing other details.
For the year that began in April, Mitsubishi predicted its net profit would fall to ¥700bn, but it would boost its dividend by ¥10-¥110 per share.
US investor Warren Buffett’s Berkshire Hathaway is among the largest Mitsubishi shareholders, holding a 9.67% stake.
Reuters
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