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

HANOI Vietnam AP 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 business deficits and forestall higher tariffs Analysts warn that strategy could undermine those countries long-term atmosphere ambitions and vitality safety 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 executive meeting and the authorities signed a deal in May with an American company to develop a gas import hub JERA Japan s largest power generator signed new -year contracts last month to purchase up to million metric tons of U S gas annually starting around U S efforts to sell more LNG to Asia predate the Trump administration but they ve gained momentum with his intense push to win exchange deals Liquefied natural gas or LNG is natural gas cooled to a liquid form for easy storage and transit that is used as a fuel for travel residential cooking and heating and industrial processes Trump discussed cooperation on a billion Alaska LNG project with South Korea prompting a visit by executives 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 -mile -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 force shipments to help narrow its transaction surplus with Washington Trump has put pressure on a seeming plethora of Asian trading partners to buy more U S LNG disclosed Tim Daiss at the APAC Power 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 commented LNG deals could derail renewable ambitions Experts say LNG purchasing agreements can slow adoption of renewable power in Asia Locking into long-term deals could leave countries with outdated infrastructure as the world shifts rapidly toward cleaner resource sources like solar or wind that offer faster more affordable tactics to meet growing power demand disclosed Indra Overland head of the Center for Force Research at the Norwegian Institute of International Affairs Building pipelines terminals and even household gas stoves creates systems that are expensive and formidable to replace making it harder to switch to renewables later And you re more likely then to get stuck for longer he declared Vigor companies that profit from gas or coal are powerful vested interests swaying plan to favor their business models he disclosed LNG burns cleaner than coal but it s still a fossil fuel that emits greenhouse gases and contributes to environment change A multitude of 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 Vitality Economics and Financial Analysis warns that if renewable capacity 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 commented 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 arrangement deficits South Korea would need to import million metric tons of LNG in a year more than the total amount of LNG the U S exported globally last year and triple what South Korea imported disclosed Doleman Vietnam with a exchange surplus with the U S twice the size of Korea s would need to import 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 potency 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 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 capacity defense concerns Committing to long-term U S LNG contracts could impact regional potency safeguard at a time of growing geopolitical and sector uncertainties analysts commented A core concern is over the longterm stability of the U S as a trading partner disclosed Overland The U S is not a very predictable entity And to rely on vitality from there is a very risky proposition he stated LNG only contributes to force guard 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 significant he reported This was the concern during the current possible 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 revealed Asian countries can improve their resource defense and make progress toward cutting carbon emissions by building more renewable potency he stated noting there is vast room for that given that only about of Southeast Asia s solar and wind expected is being used There are genuine choices to meet rising electricity demand It is not just having to build LNG he stated Jintamas Saksornchai in Bangkok contributed to this overview Associated Press circumstances and environmental coverage receive encouragement from several private foundations See more about AP s atmosphere initiative here The AP is solely responsible for all content Source