Alberta Premier Danielle Smith secured a major liquefied natural gas deal with Japan, despite Prime Minister Justin Trudeau previously claiming there was no viable “business case” for such agreements.
Smith met with Ichiro Takahara, chairman and CEO of the Japan Organization for Metals and Energy Security on Tuesday at an international energy conference held annually by S&P Global. At CERAWeek the two penned a memorandum of understanding between their respective governments.
The new agreement “reaffirmed” Alberta’s commitment to working with Japan to develop oil, natural gas, hydrogen and ammonia resources.
“(They have) been one of our province’s most significant and long-standing partners in Asia and has played a key role in supporting Japanese investment in our energy sector, which has helped fuel our economy and support jobs for Albertans,” said Smith about the partnership.
The organization is a state-owned enterprise operated by Japan’s Ministry of Economy, Trade and Industry.
While discussing a potential LNG deal with Germany, Trudeau had previously said that “there is no business case” for such an agreement.
Smith revealed that the the project will move forward with implementing carbon capture and storage technology while utilizing other emission-reducing measures.
The Alberta government expects the agreement to generate jobs for Albertans as well as attract outside investment to Alberta.
“In the field of carbon capture and storage, Alberta has a well-developed business environment, including a legal framework, carbon pricing system and government support programs,” said Takahara.
Takahara said that the deal “will further deepen its cooperative relationship with the Province of Alberta and contribute to the stable supply of energy and resources to Japan and the realization of a carbon neutral society.”
Alberta and Japan first signed a memorandum in 2017, when the organization was known as the Japan, Oil, Gas and Metals National Corporation. It was last renewed in 2021.
Bilateral trade between Alberta and Japan totalled more than $3 billion last year, making Japan the province’s third-largest export market.
Minister of Energy and Minerals Brian Jean said Alberta’s latest commitment will allow Alberta to supply Japan with the most “ethically produced” resources in the world.
“Alberta and Japan have been good friends for generations and our trade relationship continues to grow through this signing with JOGMEC,” said Jean in a statement Tuesday.
“We have an opportunity to supply Japan with the most ethically produced oil and gas on the planet to aid in their economy and shift to low-carbon electricity production while we continue to grow our international energy exports.”