By Michele Pek
(Reuters) – At least six Asian economies have expressed interest in buying liquefied natural gas (LNG) to narrow their trade deficit with the United States and fend off tariffs, while others look to expand and diversify supplies.
Companies in the U.S., the world’s largest exporter of LNG, are pushing ahead with projects for new or expanded export capacity after the Trump administration in January lifted a moratorium on new LNG export permits.
Trump’s decision could pave the way for almost 100 million metric tons per year (tpy) of additional LNG by 2031.
“Asia is still exposed to further tariff hikes given that seven out of 10 economies in the region are running large trade surpluses with the U.S.,” Morgan Stanley analysts said in a note.
Here is what government officials have said so far:
JAPAN
Japan, the world’s No. 2 LNG buyer, will soon begin importing a record amount of new shipments of American LNG, U.S. President Donald Trump said on February 7.
The two nations are also working on a joint venture on Alaskan oil and gas, Trump said at a White House press conference.
In addition to diversifying supplies from riskier sources such as Russia, a Japanese official said imports of U.S. LNG could help reduce the $56 billion bilateral trade deficit and stave off the threat of tariffs.
Nearly 10% of Japan’s LNG imports come from the U.S., data from analytics firm Kpler showed.
SOUTH KOREA
South Korea may import more U.S. oil and gas, including LNG, to stabilise energy supplies given tensions in the Middle East, the country’s industry minister Ahn Duk-geun said on January 16.
In 2024, South Korea posted a record $55.7 billion trade surplus with the United States, up 25.4% from a year earlier.
South Korea, the world’s No. 3 LNG buyer, imported 47.2 million tons of the super-chilled fuel in 2024, of which 5.71 million tons were from the U.S, Kpler data showed.
INDIA
Indian energy firms including GAIL India Ltd, Indian Oil Corp and Bharat Petroleum Corp are looking to buy U.S. LNG, Oil Secretary Pankaj Jain said on Monday.
GAIL chairman Sandeep Kumar Gupta said the company will revive plans to buy a stake in a U.S. LNG plant or buy U.S. LNG under long-term contracts and will issue a tender.
India, the world’s No. 4 LNG buyer, imported 26.59 million tons in 2024, of which 5 million tons were from the U.S., Kpler data showed.
Bilateral trade between the two countries exceeded $118 billion in fiscal 2023-2024, with India posting a surplus of $32 billion.
TAIWAN
State energy firm CPC is interested in buying natural gas from Alaska, the economy ministry said on Monday.
Taiwan’s Central News Agency reported on Sunday that CPC is in talks with an unnamed Alaskan company “in the hope of reducing the trade surplus with the U.S.”.
Taiwan’s trade surplus with the U.S. surged 83% last year, driven by demand for high-tech products such as semiconductors.
The world’s fifth largest LNG importer shipped in 21.78 million tons last year, mostly from Australia and Qatar while the U.S. supplies about 10% of Taiwan’s needs.
BANGLADESH
The Bangladesh government has signed a non-binding agreement with Louisiana’s Argent LNG to purchase up to 5 million tpy of LNG, the company said on Friday.
The U.S. had a trade deficit with Bangladesh of around $6 billion in 2023, data from the Office of the United States Trade Representative showed.
Bangladesh imported 720,000 tons of LNG from the U.S., out of a total 5.69 million tons last year, Kpler data showed.
VIETNAM
The Southeast Asian country’s trade surplus with the U.S. rose annually by nearly 20% in 2024 to a record level exceeding $123 billion.
The trade surplus could be reduced to ease tensions with the purchase of U.S. big-ticket items, a senior Hanoi-based diplomat said, pointing to LNG.
Vietnam, which started importing LNG in 2023, imported a total of 330,000 tons in 2024, Kpler data showed.
(Compiled by Michele Pek; Editing by Florence Tan and Lincoln Feast.)
