Asian nations are increasingly looking to increase their imports of U.S. oil and gas as a strategy to reduce trade surpluses with the United States. This shift comes amidst ongoing efforts to alleviate the financial strain caused by tariffs imposed by President Donald Trump’s administration. Many of these countries have significant trade surpluses with the U.S. while also being major importers of energy.
In Indonesia, the government is proposing to enhance imports of crude oil and liquefied petroleum gas (LPG) from the U.S. by approximately $10 billion. Energy Minister Bahlil Lahadalia indicated that the energy ministry is recommending an increase in the import quota for U.S. LPG alongside a boost in crude oil purchases to meet this goal. Pakistan is contemplating its first-ever import of U.S. crude oil to address a trade imbalance that has led to increased tariffs.
According to a government source, the plan involves purchasing crude oil equivalent to the country’s current oil and refined product imports, amounting to roughly $1 billion. India, on the other hand, is considering eliminating import taxes on U.S. liquefied natural gas (LNG) to facilitate increased purchases. Industry sources revealed that the country aims to cancel taxes on U.S. ethane and LPG imports as well.
GAIL India, the largest LNG importer in the nation, is also looking to acquire a stake in a U.S. LNG project combined with a long-term gas import agreement. Thailand has announced plans to import more U.S. LNG and ethane over the next five years. This includes an existing commitment to import 1 million metric tons of LNG next year and a new contract for additional LNG imports.
Lastly, President Trump is advocating for Japan, South Korea, and Taiwan to participate in a $44 billion natural gas export project in Alaska. This initiative entails constructing a pipeline to transport gas for shipment as LNG to these countries, which could enhance their energy security while simultaneously addressing trade concerns.