Full Breakdown
Japan Seeks Expanded Energy and Defence Ties with Canada
By Drooid · · How we work
Core Development: Energy Purchases and Defence Cooperation
Japan’s new ambassador to Canada, Masashi Nakagome, says Tokyo is actively looking to increase imports of Canadian energy and deepen defence collaboration. He highlighted that “there is no choke point” between the two nations, underscoring the strategic appeal of a supply route that bypasses narrow maritime passages such as the Strait of Malacca. Nakagome also noted that Japanese firms are monitoring the renewal of the United-States-Mexico-Canada Agreement because predictability in North-American trade is crucial for future investments.
Background and Strategic Context
Japan’s interest in Canadian resources aligns with its broader push for economic security. Mitsubishi Corp. holds a 15 percent joint-venture stake in the LNG Canada project, which began shipping liquefied natural gas to Asia in June 2025 and may see a Phase 2 expansion involving Japan. Canada also supplies Japan with coal, oil, uranium and propane; AltaGas Ltd.’s shipments accounted for 24 percent of Japan’s propane market in 2024 before falling to 11 percent in 2025 after a China-U.S. trade dispute redirected demand.
On the defence side, Canada has joined the Global Combat Air Programme (GCAP) as an observer, a joint effort by Britain, Japan and Italy to develop a sixth-generation fighter. Ottawa’s participation is presented as a step toward diversifying defence ties beyond the United States, whose reliability some analysts question amid concerns about potential restrictions on spare parts or software updates.
Official Statements from Ambassador Nakagome
Nakagome emphasized that predictability in trade relations is vital for both Japanese and other companies operating in North America. He declined to offer advice on Canada’s expanding relations with China, stating it was not his place to comment.
Key Data on Energy Trade
- LNG Canada: Mitsubishi Corp. – 15 % joint-venture partner; project began LNG shipments in June 2025.
- Propane: AltaGas Ltd. supplied 24 % of Japan’s propane imports in 2024; share fell to 11 % in 2025.
- Other commodities: Japan imports Canadian coal, oil and uranium; it is also a major market for Canadian propane.
Verbatim Quotes
- “Between Japan and Canada, there is no choke point,” — Masashi Nakagome, next-generation fighter
- “We have to be aware some countries use economic coercion to force [on] other countries their political opinions and so forth.” — Mr. Nakagome, next-generation fighter