American LNG reels in Asian buyers amid Trump’s tariff pressure

HANOI, Vietnam — Asian countries are offering to buy more US liquefied natural gas (LNG) in negotiations with the Trump administration. This is as a way to alleviate tensions over US trade deficits and forestall higher tariffs. 

Analysts warn that strategy could undermine those countries’ long-term climate ambitions and energy security.

Buying more US LNG has topped the list of concessions Asian countries have offered in talks with Washington over President Donald Trump’s sweeping tariffs on foreign goods. 

Vietnam’s Prime Minister underlined the need to buy more of the super-chilled fuel in a government meeting. The government signed a deal in May with an American company to develop a gas import hub. 

JERA, Japan’s largest power generator, signed new 20-year contracts last month. It will purchase up to 5.5 million metric tons of US gas annually starting around 2030.

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US efforts to sell more LNG to Asia predate the Trump administration. But they’ve gained momentum with his intense push to win trade deals.

Liquefied natural gas, or LNG, is natural gas cooled to a liquid form for easy storage and transport. It is used as a fuel for transport, residential cooking and heating and industrial processes.

Trump discussed cooperation on a $44 billion Alaska LNG project with South Korea, prompting a visit by officials to the site in June. 

The Philippines is also a potential importer of US LNG

The US president has promoted the project as a way to supply gas from Alaska’s vast North Slope to a liquefication plant at Nikiski in south-central Alaska. He has an eye largely on exports to Asian countries while bypassing the Panama Canal.

Thailand has offered to commit to a long-term deal for American fuel.

The Philippines is also considering importing gas from Alaska. India is mulling a plan to scrap import taxes on US energy shipments to help narrow its trade surplus with Washington.

READ: PH at crossroads between LNG dependence and clean energy

“Trump has put pressure on a seeming plethora of Asian trading partners to buy more US LNG,” said Tim Daiss, at the APAC Energy Consultancy. Daiss pointed out that Japan had agreed to buy more despite being so “awash in the fuel” that it was being forced to cancel projects and contracts to offload the excess to Asia’s growing economies.

“Not good for Southeast Asia’s sustainability goals,” he said.

LNG deals could derail renewable ambitions

Experts say LNG purchasing agreements can slow adoption of renewable energy in Asia.

Locking into long-term deals could leave countries with outdated infrastructure. This, as the world shifts rapidly toward cleaner energy sources like solar or wind that offer faster, more affordable ways to meet growing power demand, said Indra Overland, head of the Center for Energy Research at the Norwegian Institute of International Affairs.

Building pipelines, terminals, and even household gas stoves creates systems that are expensive and difficult to replace. This makes it harder to switch to renewables later. “And you’re more likely then to get stuck for longer,” he said.

Energy companies that profit from gas or coal are powerful vested interests. They sway policy to favor their business models, he said.

LNG burns cleaner than coal, but it’s still a fossil fuel that emits greenhouse gases and contributes to climate change.

Many LNG contracts include “take-or-pay” clauses. These oblige governments to pay even if they don’t use the fuel. Christopher Doleman of the Institute for Energy Economics and Financial Analysis warns that if renewable energy grows fast, reducing the need for LNG, countries may still have to pay for gas they no longer need.

Pakistan is an example. Soaring LNG costs drove up electricity prices, pushing consumers to install rooftop solar panels. As demand for power drops and gas supply surges, the country is deferring LNG shipments and trying to resell excess fuel.