U.S.-Japan Energy LNG Cooperation in ASEAN Markets
On February 7, during U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba’s bilateral meeting at the White House, discussions on liquefied natural gas (LNG) cooperation took center stage. As a result, Japan has agreed to heavily invest in the U.S. LNG industry, importing more American LNG themselves, serving as conduit to Southeast Asian markets, and potentially entering a joint venture to develop an LNG pipeline across Alaska. There is a strategic opportunity for Japan and the U.S. to collaborate in displacing Russian LNG throughout ASEAN with American exports, strengthening energy security across the Indo-Pacific at large. Japan, as the world’s largest private financier and buyer of LNG, has the resources and expertise to help facilitate this expansion.
Japanese companies, in cooperation with U.S. producers, are well-positioned to invest in LNG terminal facilities and shipment, leveraging their expertise in LNG infrastructure, financing, and distribution to expand access throughout Southeast Asia. South Korean firms may also join these efforts, reinforcing regional energy stability and multilateral cooperation. At a recent conference, former U.S. Ambassador to Japan, Senator Bill Hagerty, highlighted the long-term geopolitical and economic advantages of expanding U.S. LNG exports, arguing that “clean” American gas offers reliable, secure, economical, and sustainable options for ASEAN clients. The LNG trade also offers a means for ASEAN countries to improve their trade positioning in the eyes of the Trump Administration.
