Asian nations are actively seeking to increase their imports of U.S. oil and gas to address significant trade surpluses with the United States. This strategy aims to alleviate the financial impact of tariffs imposed under the administration of President Donald Trump, which have caused disruption in both economies and markets.
Indonesia, for example, plans to boost its imports of crude oil and liquefied petroleum gas (LPG) from the U.S. by approximately $10 billion as part of its negotiations regarding tariffs. Energy Minister Bahlil Lahadalia confirmed that the Indonesian energy ministry has recommended raising the import quota for LPG from the U.S. and increasing crude imports to achieve this financial target.
Similarly, Pakistan is contemplating its first-ever import of crude oil from the United States. This initiative, aimed at offsetting a trade imbalance that has led to increased U.S. tariffs, is projected to involve U.S. crude equivalent to around $1 billion worth of oil, according to a refinery executive.
India is also evaluating the removal of import taxes on liquefied natural gas (LNG) from the U.S. as it seeks to decrease the trade surplus, a factor troubling the Trump administration. The country is looking to terminate taxes on both U.S. ethane and LPG imports.
GAIL India Ltd, the largest importer of LNG in India, has issued a tender to acquire a stake in a U.S. LNG project coupled with a long-term gas supply agreement. Moreover, Thailand has announced plans to enhance its imports of U.S. LNG and ethane over the next five years.
The country aims to secure a contract involving more than 1 million tons of LNG and an additional 400,000 tons of ethane, totaling significant investments in U.S. energy. In a broader context, the Trump administration is keen on advancing a $44 billion natural gas export project in Alaska, which aims to transport gas to Japan, South Korea, and Taiwan, essential markets for U.S. energy exports.
Partnerships with nations like Japan and Taiwan are being fostered to enhance energy security and future trading relationships.