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Can Alaska LNG Tip the Scales in Japan–US Tariff Talks?
Can Alaska LNG Tip the Scales in Japan–US Tariff Talks?

Japan Forward

time2 hours ago

  • Business
  • Japan Forward

Can Alaska LNG Tip the Scales in Japan–US Tariff Talks?

As negotiations between Japan and the United States over President Donald Trump's tariffs intensify, a US liquefied natural gas (LNG) project is viewed as Tokyo's trump card. The project involves a 1,300-kilometer pipeline running from the North Slope gas field in northern Alaska down through the state to a newly constructed liquefaction plant. Once completed, it could supply 20 million tons of LNG annually to Japan and other East Asian countries. The concept itself has existed for a long time, but the primary obstacle has been the enormous cost. Estimated at $44 billion USD (over ¥6 trillion JPY), the project is more than twice as expensive as another LNG project currently underway in Texas. With rising material prices, the cost is expected to increase even further as the project undergoes additional review. If the project's costs are passed on to LNG prices, it could lead to "high prices" for the consumers. Scheduled to begin operations in 2030, after Trump's tenure, the project faces uncertainties. Takafumi Yanagisawa, senior researcher at The Institute of Energy Economics, Japan, points out that "the risk of policy changes following a change in administration must be carefully considered." There are clear advantages for Japan. Currently, most US-produced LNG is shipped from Gulf Coast terminals, taking roughly 30 days via the Panama Canal and about 40 days via the Cape of Good Hope. In contrast, LNG shipped from Alaska can reach Japan in under 10 days. US-produced LNG, including but not limited to that from Alaska, has another advantage: it does not contain a "destination clause" restricting resale to third parties. A tanker loaded with liquefied natural gas (LNG) arrives at a pier. (©Sankei) Japan's LNG procurement is based on long-term contracts that ensure a stable supply of a fixed volume over an extended period. But even if demand falls, such as during a warm winter, the contracted amount must still be purchased. Since US LNG contracts lack a destination clause, any surplus can be resold to other countries, helping Japan mitigate the risk of excess supply. JERA company of Japan signs Liquified Natural Gas (LNG) agreement at the U.S. Department of Energy headquarters in Washington, D.C. on June 11, 2025. (©US Department of Interior) Private companies are already expanding their procurement of US LNG. JERA, Japan's largest thermal power producer, has signed contracts with four American companies to purchase up to 5.5 million tons of LNG annually. While diversifying supply sources is the primary goal, another important factor is that "the contracts offer greater flexibility" compared to LNG imports from the Middle East, says Mineko Hida, general manager of JERA's LNG Division. JERA has also expressed interest in the Alaska LNG project. At a press conference in late June, Chairman Yukio Kani praised the concept as "very good." He emphasized the short transport time to Japan and the absence of geopolitical risks along the route, such as those linked to the Strait of Hormuz in the Middle East. JERA is reportedly closely monitoring the ongoing review of the project plan. US LNG currently accounts for about 10% of Japan's total LNG imports. With global demand for LNG expected to continue rising, increasing imports from the US will also help strengthen the country's energy security. Prime Minister Shigeru Ishiba and US President Donald Trump meet in the Oval Office, the White House, on February 7. (©Prime Minister's Office) In the Japan-US tariff negotiations, differences persist over issues such as automobile tariffs. President Trump has repeatedly labeled trade with Japan in automobiles as "unfair." However, increasing imports of American cars, which are unpopular among Japanese consumers, or reducing Japan's automobile exports, is unrealistic. If Japan concedes too easily, it risks encouraging repeated unreasonable demands. The Japanese government should therefore approach the negotiations with firmness and persistence. On the other hand, if Washington remains focused on correcting the trade imbalance, no argument about the contributions of Japanese companies to the American economy is likely to sway President Trump. The only way to break the deadlock is by expanding imports of US products that also benefit Japan. While the Alaska LNG project won't immediately reduce the US trade deficit, advancing this initiative with Japan's involvement — one of Trump's pet projects — could have a positive impact. President Donald J. Trump participates in a walking tour of Cameron LNG Export Terminal Tuesday, May 14, 2019, in Hackberry, La. (©White House/Shealah Craighead) In early June, the Ministry of Economy, Trade and Industry sent Takehiko Matsuo, the Vice Minister for International Affairs, to a US government briefing on the Alaska LNG project. While it's clear the government is considering the project as a bargaining chip, another senior Ministry official expressed caution, stating, "LNG prices are directly linked to electricity and gas rates. If the price is high, we simply won't buy it. It all depends on economic viability." So how should Japan engage with the risky Alaska LNG project? Yanagisawa stresses that if Japan decides to participate, "government involvement is essential." He suggests that development support through the Japan Oil, Gas and Metals National Corporation (JOGMEC) could be considered to help keep LNG prices affordable. Should it prove difficult for Japan to take on the project alone, another option would be to share the investment burden with other Asian LNG-importing countries and regions, such as South Korea and Taiwan. "If it's economically viable, then we should do it," the senior METI official said, without ruling out the possibility. Can we leverage the few cards we hold as negotiation tools to break the deadlock? Now is the time to apply wisdom and safeguard Japan's national interests. Author: Shunichi Takahashi, The Sankei Shimbun ( Read this in Japanese )

Trump's tariff pressure pushes Asia toward American LNG, but at the cost of climate goals
Trump's tariff pressure pushes Asia toward American LNG, but at the cost of climate goals

New Indian Express

timea day ago

  • Business
  • New Indian Express

Trump's tariff pressure pushes Asia toward American LNG, but at the cost of climate goals

HANOI, VIETNAM: Asian countries are offering to buy more US liquefied natural gas in negotiations with the Trump administration 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, and 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 to purchase up to 5.5 million metric tons of U.S. gas annually starting around 2030. 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 that 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 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, with 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 and shown interest in the same Alaska project to build a nearly 810-mile (1,300-kilometer) pipeline that would funnel gas from The Philippines is also considering importing gas from Alaska while India is mulling a plan to scrap import taxes on US energy shipments to help narrow its trade surplus with Washington. "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, pointing 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 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—making 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, swaying 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, obliging 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. The LNG math doesn't add up Experts said that although countries are signaling a willingness to import more U.S. LNG, they're unlikely to import enough to have a meaningful impact on US trade deficits. South Korea would need to import 121 million metric tons of LNG in a year — 50% more than the total amount of LNG the U.S. exported globally last year and triple what South Korea imported, said Doleman. Vietnam — with a trade surplus with the U.S. twice the size of Korea's — would need to import 181 million metric tons annually, more than double what the U.S. exported last year. Other obstacles stand in the way. The Alaska LNG project is widely considered uneconomic. Both coal and renewable energy in Asia are so much cheaper that U.S. gas would need to cost less than half its current price to compete. Tariffs on Chinese steel could make building building gas pipelines and LNG terminals more expensive, while longstanding delays to build new gas turbines mean new gas power projects may not come online until 2032. Meanwhile, a global glut in LNG will likely drive prices lower, making it even harder for countries to justify locking into long-term deals with the United States at current higher prices. LNG deals raise energy security concerns Committing to long-term U.S. LNG contracts could impact regional energy security at a time of growing geopolitical and market uncertainties, analysts said. A core concern is over the longterm stability of the U.S. as a trading partner, said Overland. "The U.S. is not a very predictable entity. And to rely on energy from there is a very risky proposition," he said. LNG only contributes to energy security when it's available and affordable, says Dario Kenner of Zero Carbon Analytics. "That's the bit that they leave out ... But it's pretty important," he said. This was the concern during the recent potential disruptions to fuel shipments through the Strait of Hormuz and earlier during the war in Ukraine, when LNG cargoes originally destined for Asia were rerouted to Europe. Despite having contracts, Asian countries like Bangladesh and Sri Lanka were outbid by European buyers. "Events in Europe, which can seem very far away, can have an impact on availability and prices in Asia," Kenner said. Asian countries can improve their energy security and make progress toward cutting carbon emissions by building more renewable energy, he said, noting there is vast room for that given that only about 1% of Southeast Asia's solar and wind potential is being used. "There are genuine choices to meet rising electricity demand. It is not just having to build LNG," he said. (ANIRUDDHA GHOSAL with contribution from Jintamas Saksornchai)

Trump's tariff pressure pushes Asia towards American LNG
Trump's tariff pressure pushes Asia towards American LNG

Qatar Tribune

timea day ago

  • Business
  • Qatar Tribune

Trump's tariff pressure pushes Asia towards American LNG

Agencies Asian countries are offering to buy more U.S. liquefied natural gas in negotiations with the Trump administration as a way to alleviate tensions over U.S. trade deficits and forestall higher tariffs. Analysts warn that strategy could undermine those countries' long-term climate ambitions and energy security. Buying more U.S. 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, and 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 to purchase up to 5.5 million metric tons of U.S. gas annually starting around 2030. U.S. 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 that 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 U.S. 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, with 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 and shown interest in the same Alaska project to build a nearly 810-mile (1,300-kilometer) pipeline that would funnel gas from The Philippines is also considering importing gas from Alaska while India is mulling a plan to scrap import taxes on U.S. energy shipments to help narrow its trade surplus with Washington. 'Trump has put pressure on a seeming plethora of Asian trading partners to buy more U.S. LNG,' said Tim Daiss, at the APAC Energy Consultancy, pointing 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. Experts say LNG purchasing agreements can slow adoption of renewable energy in Asia. Locking into long-term deals could leave countries with outdated infrastructure 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—making 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, swaying 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, obliging 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. Experts said that although countries are signaling a willingness to import more U.S. LNG, they're unlikely to import enough to have a meaningful impact on U.S. trade deficits. South Korea would need to import 121 million metric tons of LNG in a year — 50% more than the total amount of LNG the U.S. exported globally last year and triple what South Korea imported, said Doleman. Vietnam — with a trade surplus with the U.S. twice the size of Korea's — would need to import 181 million metric tons annually, more than double what the U.S. exported last year. Other obstacles stand in the way. The Alaska LNG project is widely considered uneconomic. Both coal and renewable energy in Asia are so much cheaper that U.S. gas would need to cost less than half its current price to compete. Tariffs on Chinese steel could make building building gas pipelines and LNG terminals more expensive, while longstanding delays to build new gas turbines mean new gas power projects may not come online until 2032. Meanwhile, a global glut in LNG will likely drive prices lower, making it even harder for countries to justify locking into long-term deals with the United States at current higher prices. Committing to long-term U.S. LNG contracts could impact regional energy security at a time of growing geopolitical and market uncertainties, analysts said. A core concern is over the longterm stability of the U.S. as a trading partner, said Overland.

Trump tariff pressure pushes Asia toward American LNG at cost of climate goals
Trump tariff pressure pushes Asia toward American LNG at cost of climate goals

Nahar Net

time4 days ago

  • Business
  • Nahar Net

Trump tariff pressure pushes Asia toward American LNG at cost of climate goals

by Naharnet Newsdesk 18 July 2025, 17:13 Asian countries are offering to buy more U.S. liquefied natural gas in negotiations with the Trump administration as a way to alleviate tensions over U.S. trade deficits and forestall higher tariffs. Analysts warn that strategy could undermine those countries' long-term climate ambitions and energy security. Buying more U.S. 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, and 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 to purchase up to 5.5 million metric tons of U.S. gas annually starting around 2030. U.S. 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 that 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 U.S. 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, with 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 and shown interest in the same Alaska project to build a nearly 810-mile (1,300-kilometer) pipeline that would funnel gas from The Philippines is also considering importing gas from Alaska while India is mulling a plan to scrap import taxes on U.S. energy shipments to help narrow its trade surplus with Washington. "Trump has put pressure on a seeming plethora of Asian trading partners to buy more U.S. LNG," said Tim Daiss, at the APAC Energy Consultancy, pointing 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 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—making 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, swaying 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, obliging 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. The LNG math doesn't add up Experts said that although countries are signaling a willingness to import more U.S. LNG, they're unlikely to import enough to have a meaningful impact on U.S. trade deficits. South Korea would need to import 121 million metric tons of LNG in a year — 50% more than the total amount of LNG the U.S. exported globally last year and triple what South Korea imported, said Doleman. Vietnam — with a trade surplus with the U.S. twice the size of Korea's — would need to import 181 million metric tons annually, more than double what the U.S. exported last year. Other obstacles stand in the way. The Alaska LNG project is widely considered uneconomic. Both coal and renewable energy in Asia are so much cheaper that U.S. gas would need to cost less than half its current price to compete. Tariffs on Chinese steel could make building building gas pipelines and LNG terminals more expensive, while longstanding delays to build new gas turbines mean new gas power projects may not come online until 2032. Meanwhile, a global glut in LNG will likely drive prices lower, making it even harder for countries to justify locking into long-term deals with the United States at current higher prices. LNG deals raise energy security concerns Committing to long-term U.S. LNG contracts could impact regional energy security at a time of growing geopolitical and market uncertainties, analysts said. A core concern is over the longterm stability of the U.S. as a trading partner, said Overland. "The U.S. is not a very predictable entity. And to rely on energy from there is a very risky proposition," he said. LNG only contributes to energy security when it's available and affordable, says Dario Kenner of Zero Carbon Analytics. "That's the bit that they leave out ... But it's pretty important," he said. This was the concern during the recent potential disruptions to fuel shipments through the Strait of Hormuz and earlier during the war in Ukraine, when LNG cargoes originally destined for Asia were rerouted to Europe. Despite having contracts, Asian countries like Bangladesh and Sri Lanka were outbid by European buyers. "Events in Europe, which can seem very far away, can have an impact on availability and prices in Asia," Kenner said. Asian countries can improve their energy security and make progress toward cutting carbon emissions by building more renewable energy, he said, noting there is vast room for that given that only about 1% of Southeast Asia's solar and wind potential is being used. "There are genuine choices to meet rising electricity demand. It is not just having to build LNG," he said.

Asian countries offer to buy more US LNG to stave off harsh tariffs
Asian countries offer to buy more US LNG to stave off harsh tariffs

Euronews

time4 days ago

  • Business
  • Euronews

Asian countries offer to buy more US LNG to stave off harsh tariffs

Asian countries are offering to buy more US liquefied natural gas (LNG) in negotiations with the Trump administration as a way to alleviate tensions over US trade deficits and stave off 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. 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. Vietnam's Prime Minister underlined the need to buy more of the super-chilled fuel and 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 in June to purchase up to 5.5 million metric tons of US gas annually starting around 2030. LNG pipelines from Alaska Liquefied natural gas, or LNG, is natural gas cooled to a liquid form for easy storage and transportation that is used as a fuel for transport, residential cooking and heating and industrial processes. Trump discussed cooperation on a $44 billion (€37.8bn) Alaska LNG project with South Korea, prompting a visit by officials to the site in June. 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, with 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 and shown interest in the same Alaska project to build a nearly 1,300-kilometre pipeline that would funnel gas from Alaska's North Slope region. The Philippines is also considering importing gas from Alaska while India is mulling a plan to scrap import taxes on US energy shipments to help narrow its trade surplus with Washington. '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, pointing 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 added. LNG deals could derail renewable ambitions Experts say LNG purchasing agreements could slow adoption of renewable energy in Asia. Locking into long-term deals could leave countries with outdated infrastructure 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—making 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, swaying policy to favour 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, obliging 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. The LNG math doesn't add up Experts said that although countries are signalling a willingness to import more US LNG, they're unlikely to import enough to have a meaningful impact on US trade deficits. South Korea would need to import 121 million metric tons of LNG in a year — 50% more than the total amount of LNG the US exported globally last year and triple what South Korea imported, said Doleman. Vietnam — with a trade surplus with the US twice the size of Korea's — would need to import 181 million metric tons annually, more than double what the US exported last year. Other obstacles stand in the way. The Alaska LNG project is widely considered uneconomic. Both coal and renewable energy in Asia are so much cheaper that US gas would need to cost less than half its current price to compete. Tariffs on Chinese steel could make building gas pipelines and LNG terminals more expensive, while longstanding delays to build new gas turbines mean new gas power projects may not come online until 2032. Meanwhile, a global glut in LNG will likely drive prices lower, making it even harder for countries to justify locking into long-term deals with the United States at current higher prices. LNG deals raise energy security concerns Committing to long-term US LNG contracts could impact regional energy security at a time of growing geopolitical and market uncertainties, analysts said. A core concern is over the long-term stability of the US as a trading partner, said Overland. 'The US is not a very predictable entity. And to rely on energy from there is a very risky proposition,' he said. LNG only contributes to energy security when it's available and affordable, says Dario Kenner of Zero Carbon Analytics. 'That's the bit that they leave it's pretty important,' he said. This was the concern during the recent potential disruptions to fuel shipments through the Strait of Hormuz, and earlier in Russia's full-scale invasion of Ukraine, when LNG cargoes originally destined for Asia were re-routed to Europe. Despite having contracts, Asian countries like Bangladesh and Sri Lanka were outbid by European buyers. 'Events in Europe, which can seem very far away, can have an impact on availability and prices in Asia,' Kenner said. Asian countries can improve their energy security and make progress toward cutting carbon emissions by building more renewable energy, he said, noting there is vast room for that given that only about 1% of Southeast Asia's solar and wind potential is being used. 'There are genuine choices to meet rising electricity demand. It is not just having to build LNG,' he said.

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