From ‘climate’ crusader to gas saleswoman: MLG’s latest energy pivot

Gov. Michelle Lujan Grisham hosted Japan’s ambassador to the United States in her Capitol office Monday to tout what she called a “roadmap” for exporting Rocky Mountain natural gas to Asian markets — an ironic move from a governor whose own environmental policies have constrained New Mexico’s oil and gas industry.

Ambassador Shigeo Yamada joined Lujan Grisham, Wyoming Gov. Mark Gordon, and energy executives to discuss a plan crafted by the Western States and Tribal Nations Energy Initiative. The report outlines two potential routes for exporting liquefied natural gas (LNG) — one through the Pacific Northwest and another through Mexico — that could connect the energy-rich Rocky Mountain region to buyers in Japan and other Asian nations.

The “roadmap,” as described on Monday, is not tied to any formal contracts or infrastructure commitments. But advocates say it provides a framework to finally capitalize on the vast natural gas reserves across New Mexico, Colorado, Utah, and Wyoming.

“This collective is a representation of those commitments to New Mexicans, to the people living in Wyoming, the people living in Japan, the people all across the globe,” Lujan Grisham said. “These are jobs and real opportunities while we’re solving real challenges.”

The governor framed the proposal as part of a broader transition away from what she called “carbon-heavy” industries — even though oil and gas remain among New Mexico’s top revenue sources. Her administration’s Energy Transition Act, championed in 2019, imposed some of the nation’s most aggressive renewable energy mandates, raising costs and uncertainty for traditional producers.

Still, Monday’s event reflected the state’s continued dependence on fossil fuels, particularly as Japan looks to secure long-term energy supply lines following a $7-billion-a-year deal with the U.S.

“Importing natural gas from Rocky Mountain states is one of the options we will have on the table,” Ambassador Yamada said.

Lujan Grisham touted the partnership as “the fruits of our trip” to Japan and Singapore earlier this year, when she and state officials met with Asian leaders to promote energy and technology collaboration. She thanked the ambassador for “helping us navigate opportunities between our two countries and by highlighting and learning more about what the Western states have to offer.”

Gordon, a Republican, said politics should not stand in the way of good business. “I hate to say ‘bipartisan,’” he remarked. “This is just good business.”

According to Jason Sandel, chairman of the Western States and Tribal Nations Initiative, Asian demand for liquefied natural gas is expected to double by 2025. He said Rocky Mountain gas could help reduce the continent’s carbon footprint by as much as 40 percent if new export infrastructure is built.

The report identifies seven key gas basins in the region, including New Mexico’s San Juan Basin. It also acknowledges that current production costs in the Rockies make the gas less competitive globally — a problem that could only be solved through “new large-scale infrastructure” and overcoming “difficult geography with mountainous terrain.”

Despite those challenges, the potential upside is considerable. The plan envisions cleaner energy for Western data centers and Asian markets, while avoiding the risks and costs of shipping through the Panama Canal or the Gulf of America.

Lujan Grisham said New Mexico has “nearly unlimited gas reserves” — about 277 trillion cubic feet — and described the report as a major step toward making the state a player in global LNG markets. “That’s a very powerful representation about what we can provide with growing energy demands in this country and frankly beyond,” she said.

However, critics note that Lujan Grisham’s own record on energy regulation could make such ambitions difficult to realize. Her administration’s climate policies — from methane restrictions to renewable mandates — have been viewed by many in the industry as hostile to the very infrastructure she now touts.

The event also included the announcement of a partnership between New Mexico State University and Japanese technology firm Fujitsu to collaborate on computer chip production — another product of Lujan Grisham’s Asia trip.

For now, though, the governor conceded that no concrete plan exists to move Rocky Mountain gas overseas. “There’s still a long way to go,” she said.