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

By ANIRUDDHA GHOSAL 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 conditions ambitions and force safety Related Articles Christian patriarchs make rare visit to Gaza after deadly Israeli strike on church China pledges to crack down on illicit exports of rare earths urges US to lift more commerce controls In the current era in History July Nadia s perfect Britain will lower its voting age to in a bid to strengthen democracy Zelenskyy appoints a new prime minister for a war-weary nation 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 ruling body meeting and the leadership 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 agreement deals Liquefied natural gas or LNG is natural gas cooled to a liquid form for easy storage and carriage 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 officers 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 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 capacity shipments to help narrow its exchange surplus with Washington Trump has put pressure on a seeming plethora of Asian trading partners to buy more U S LNG stated Tim Daiss at the APAC Potency 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 revealed LNG deals could derail renewable ambitions Experts say LNG purchasing agreements can slow adoption of renewable vigor in Asia Locking into long-term deals could leave countries with outdated infrastructure as the world shifts rapidly toward cleaner potential sources like solar or wind that offer faster more affordable methods to meet growing power demand explained Indra Overland head of the Center for Potency Research at the Norwegian Institute of International Affairs Building pipelines terminals and even household gas stoves creates systems that are expensive and demanding to replace making it harder to switch to renewables later And you re more likely then to get stuck for longer he explained Potential companies that profit from gas or coal are powerful vested interests swaying guidelines to favor their business models he revealed LNG burns cleaner than coal but it s still a fossil fuel that emits greenhouse gases and contributes to environment change Several 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 Potency Economics and Financial Analysis warns that if renewable resource 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 bargain deficits FILEL Capacity Secretary Chris Wright holds a statement concerning U S exports of liquefied natural gas LNG as he speaks to reporters at the White House in Washington on March AP Photo Ben Curtis File 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 reported Doleman Vietnam with a transaction 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 resource 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 potency precaution concerns Committing to long-term U S LNG contracts could impact regional strength guard at a time of growing geopolitical and field uncertainties analysts noted A core concern is over the long-term stability of the U S as a trading partner disclosed Overland The U S is not a very predictable entity And to rely on ability from there is a very risky proposition he declared LNG only contributes to vigor assurance 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 central he reported This was the concern during the latest anticipated 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 declared Asian countries can improve their force measure and make progress toward cutting carbon emissions by building more renewable power he announced noting there is vast room for that given that only about of Southeast Asia s solar and wind promising is being used There are genuine choices to meet rising electricity demand It is not just having to build LNG he explained Jintamas Saksornchai in Bangkok contributed to this assessment Associated Press circumstances and environmental coverage receive advocacy from several private foundations See more about AP s weather initiative here The AP is solely responsible for all content