Trump's tariff pressure pushes Asia toward American LNG, but at the cost of climate goals
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 government meeting, and the government signed a deal in May with an American company to develop a gas import hub. JERA, Japan's largest power generator, signed new 20-year contracts last month to purchase up to 5.5 million metric tons of U.S. gas annually starting around 2030.
U.S. efforts to sell more LNG to Asia predate the Trump administration, but they've gained momentum with his intense push to win trade deals.
Liquefied natural gas, or LNG, is natural gas cooled to a liquid form for easy storage and transport that is used as a fuel for transport, residential cooking and heating and industrial processes.
Trump discussed cooperation on a $44 billion Alaska LNG project with South Korea, prompting a visit by officials 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 810-mile (1,300-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. energy shipments to help narrow its trade surplus with Washington.
'Trump has put pressure on a seeming plethora of Asian trading partners to buy more U.S. LNG,' said Tim Daiss, at the APAC Energy 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 said.
LNG deals could derail renewable ambitions
Experts say LNG purchasing agreements can slow adoption of renewable energy in Asia.
Locking into long-term deals could leave countries with outdated infrastructure as the world shifts rapidly toward cleaner energy sources like solar or wind that offer faster, more affordable ways to meet growing power demand, said Indra Overland, head of the Center for Energy Research at the Norwegian Institute of International Affairs.
Building pipelines, terminals, and even household gas stoves creates systems that are expensive and difficult to replace—making it harder to switch to renewables later. 'And you're more likely then to get stuck for longer,' he said.
Energy companies that profit from gas or coal are powerful vested interests, swaying policy to favor their business models, he said.
LNG burns cleaner than coal, but it's still a fossil fuel that emits greenhouse gases and contributes to climate change.
Many 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 Energy Economics and Financial Analysis warns that if renewable energy 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 upExperts said 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. trade deficits.
South Korea would need to import 121 million metric tons of LNG in a year — 50% more than the total amount of LNG the U.S. exported globally last year and triple what South Korea imported, said Doleman. Vietnam — with a trade surplus with the U.S. twice the size of Korea's — would need to import 181 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 energy 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 2032. 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 energy security concernsCommitting to long-term U.S. LNG contracts could impact regional energy security at a time of growing geopolitical and market uncertainties, analysts said.
A core concern is over the longterm stability of the U.S. as a trading partner, said Overland. 'The U.S. is not a very predictable entity. And to rely on energy from there is a very risky proposition,' he said.
LNG only contributes to energy security 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 important,' he said.
This was the concern during the recent potential 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 said.
Asian countries can improve their energy security and make progress toward cutting carbon emissions by building more renewable energy, he said, noting there is vast room for that given that only about 1% of Southeast Asia's solar and wind potential is being used.
'There are genuine choices to meet rising electricity demand. It is not just having to build LNG,' he said.
___
Jintamas Saksornchai in Bangkok contributed to this report.
___
Associated Press climate and environmental coverage receive support from several private foundations. See more about AP's climate initiative here. The AP is solely responsible for all content.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
How meme stock mania is a 'sign of the times'
Retail investors are piling into high-volatility trades, from meme stocks to speculative plays. Stocktwits editor in chief and vice president of community Tom Bruni explains what the activity says about market sentiment and how companies like GoPro (GPRO) and Krispy Kreme (DNUT) can respond. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Meme stocks, we're talking GoPro and Krispy Kreme. When you watch these moves, Tom, is it fun? Is it concerning? What do you make of it? Yeah, it's a bit of both. I think the, uh, it's a sign of the environment we're in. We've had a record rally off the April lows. Most of the major indexes are up 20, 30%. Stocks like Robinhood, Coinbase, Palantir, retail favorites are up 200, 300% in this short period. We're coming off two back-to-back 25% plus years in the S&P. And so, I mean, animal spirits are alive and well. I read a stat today, 70% of the options market volume is on the call side, and 27% of year-to-date volume in trading across the board is coming in stocks under $5. That's even higher than during the pandemic. Because I I I asked that question, Tom, because I can understand some viewers would be watching this and they would be thinking to themselves, well, all of a sudden we're talking about Josh and Tom were talking meme stocks, we're talking about spacks again. Just whether you see this sort of speculative activity and is it a side to you of froth in the market. Yeah. Yeah, typically we see this type of activity towards the latter end of a move. So, again, not calling a market top, but I mean, think about it. We're up 30% in the indices over three months. A lot of great news has been priced in, and I think earning season is kind of bringing the market kind of back into to focus on the fundamentals. Um, and so I think it's just a sign of the times. People, you know, when you see your portfolio going up 25% in three months, you're not really interested in making one or two percent here. You're going for multibaggers, as they like to say online. But I think it's also important to frame the conversation. People are not all in and all out. They are using a portion of their portfolio that is for fun and speculation and, you know, growth, uh, for these opportunities and not necessarily taking the excessive risk that I think a lot of people think of. And when you're watching these moves, Tom, do we have line of sight of of who's in? I mean, is this retail traders? Is it the pros? Is it both? Yeah, what I've been saying is that retail is starting the party and then forcing the institutions to dance. And what I mean by that is the institutions are kind of setting these stocks up for a meme type situation, heavily shorted brand names that like have some fundamental value, but you know, are not going to zero. And then we have sophisticated investors online, retail, using market mechanics against the institutions. So in the situation of calls earlier this week, the stock moved from $11 to $20 in the pre-market. It doesn't take a whole lot of volume on the retail side to be able to move a stock like that. And if you're an institution that's short, uh, or or hedged against that stock, you got to make that move at the open. And so it's kind of a situation where retail is saying, hey, this situation doesn't make sense to us. There's a fundamental case to be made here, and we're going to move the market in our direction and the institutions will have to adjust. Let's say you're a GoPro or Krispy Kreme. Yeah. You see these moves, right? What should be, you think time, your reaction, your response? How should you, if at all, try and take advantage of it? Yeah. I mean, every company with high short interest right now should be thinking about how do we convert conversation and attention into capital and long-term shareholder conviction. The difference between this being a short-term move where the stock just pops and and moves lower is management's ability to go out there, raise capital, uh, get their balance sheets in focus, and really tell a compelling story for shareholders to say, hey, this is not just a trade. We're really turning this business around. There's a fundamental reason to be involved here. And I think it's the investor relations departments, the the executives that are using online platforms like Stocktwits, like Twitter, like Reddit, to get their messaging out there and tell a compelling story. Those are going to be the ones that stick around. Those who choose not to engage with retail are likely going to see their stock fall. Let's have another another name I want you to take on Opendoor. Uh, we had EMJ's Eric Jackson on on YFi talking about the name. Take a listen to what he had to say. Yeah. Open door's not a meme stock. This is a real turnaround legitimate turnaround story. It's an opportunity for anybody who missed Carvana. And I missed it at 350. I got in at $15 on Carvana. So I think I do know what to look for in these kinds of situations, um, and I think that this is the ground floor for a move to 82. What what do you make of Mr. Jackson's comments? He's talking Opendoor and he saying, listen, this is a real story. This is a fundamental story. What do you make of that? Yeah. I think individual story aside, I think that's what's kind of attracting people to these situations. They see a company that's beaten down, highly bet against, and there's some glimpse of a fundamental case to be made where somebody can say, you know what? I I kind of believe that. You know, maybe it shouldn't be trading at 82, but maybe it shouldn't be trading at a dollar. And there's a lot of room in between there. And so we're seeing people reassess situations that have otherwise been left for dead. And as retail gets into these names, institutions also have to adjust and, again, I think it's going to come down to the management team of Opendoor. What do they do with this situation? Um, how do they create a compelling narrative? Because right now it's all about the stock price. It's all about what's happening with trading, but what's actually happening with the company? What are they going to do from a strategy perspective to get this back on the right footing? More broadly, Tom, I'm also just interested in the Stocktwits community. How do they feel right now about this market? Where do they stand on this rally after the move we've seen after that April low? Yeah. I mean, it's quite, uh, quite amazing. Throughout the April period, we saw kind of institutions running for the hills on on tariff concerns, but retail was in there buying the dip, and they've been quite aggressive throughout this entire rally. But that said, we're seeing some catch-up plays, uh, you know, come to fruition here. So instead of focusing on a Robinhood or Coinbase that's up, you know, hundreds of percentages already, they're looking at other opportunities. We're looking international. Japan just, uh, just signed a trade deal. Um, you know, Chinese stocks are are set to play catch up if they can get a deal. So people are looking for value. They're still bullish overall, but they're looking for opportunities where, uh, maybe the the puck is going as opposed to where it's been. When I last spoke to you, Tom, I remember, correct me if I'm wrong, but there was a lot of interest, enthusiasm, again, the Stocktwits community on themes like nuclear, um, things like AI, crypto. Are those still front and center? Yeah. Yeah. That's continuing. You're just seeing, uh, money rotate within those themes. So rather than play it directly through Nvidia or directly through the same names, um, they're looking for other opportunities. So lithium stocks, uh, are a big one that I've seen pop off over the last couple of weeks. Um, solar stocks are are catching a bit again. So people are seeing these broader themes and saying, okay, instead of buying the the nuclear energy stock that's already up 400%, maybe I buy a solar stock because I know that there's going to be some energy component to this kind of broader theme. So Last last question, Tom. What about crypto? Is that still a point of interest on the platform? It it's, um, you know, it's kind of spread as risk appetite has, um, kind of widened here. Seeing a lot of meme coins, a lot of interest around Ethereum. There's a couple of treasury, uh, you know, Ethereum treasury companies out there. So, uh, definitely a hot area. I think the next phase for crypto and where people are looking on Crypto Twitter is, uh, stable coins. You know, we've got Circle, we've got Robin Hood making a big, uh, move into staking and stable coins. So I think that's kind of the next leg of this, uh, you know, crypto market rally.

Yahoo
3 minutes ago
- Yahoo
'We ask for more data' than FICO: VantageScore CEO
Silvio Tavares, VantageScore CEO, emphasizes that mortgage lenders want to use VantageScore, stressing that the company has more data and uses modern technology. He speaks to Romaine Bostick and Scarlet Fu on "The Close." Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
3 minutes ago
- Yahoo
A 59-Year-Old Career Nurse Feels 'Defeated And Cooked' After Learning Her Coworker Has Saved Nearly $500,000 More For Retirement
A longtime nurse approaching retirement recently posted on Reddit that he felt 'defeated and cooked' after discovering a coworker had $460,000 more saved in their 401(k). He shared his financial situation on the r/retirement subreddit, noting that he and his wife have about $240,000 saved for retirement, plus an anticipated $1,100 monthly pension, Social Security benefits between $1,800 and $2,300, and roughly $200,000 to $300,000 in other savings. 'I absolutely can't grind out eight more years working full-time,' he said. Dissapointment 'I was feeling OK about my plan,' he wrote, 'until talking with a coworker in the same salary range who has managed to save about $700,000 in his 401(k).' Don't Miss: Be part of the breakthrough that could replace plastic as we know it— $100k+ in investable assets? – no cost, no obligation. Many redditors urged the nurse to stop comparing himself to others. 'Comparison is the thief of joy,' one commenter said. Another added, 'You were fine until you found out someone else has more? You're 59, not 9. Way past time to stop playing that childish game.' Several pointed out that his pension is a valuable asset often overlooked. 'That pension is huge,' one person said. 'It may not sound like a lot, but you would need about $400,000 in savings to be able to withdraw $1,100 per month.' Others focused on his emotional exhaustion. The nurse explained he could not imagine working full-time for another eight years, prompting many to suggest transitioning into a less physically demanding role like remote case management or a teaching role. Trending: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — Most Americans Fall Short Of Retirement Goals While Fidelity recommends that Americans have eight times their salary saved by age 60, the reality for most people falls short. So while the nurse may not be hitting expert targets, he's still ahead of the typical American. Many commenters emphasized that retirement readiness comes down to spending, not just savings. 'Your expenses drive how long you have to work,' one said. 'What are your expected retirement expenses per month including health insurance? Know that and you can figure out how long you need to work.' Some shared their own modest setups. One retired couple said they live well off a $2,900 pension, $1,100 Social Security check, and $200,000 in cash. Their monthly expenses total just $2,200, largely due to living in a low-cost area and owning a small recurring tip: test-drive their retirement budget now. That means they should try living on what they'd expect to bring in each month during retirement. If they can live on it now, they can probably live on it then. The nurse eventually responded to the outpouring of support and practical advice. 'Thank you everyone for the advice and recommendations,' he wrote. Fellow Redditors encouraged him to speak to a fee-only financial advisor and to start tracking his monthly expenses to create a concrete plan. 'It's useless [to] feel bad about what you were not able to accomplish in the past,' one nurse wrote. 'Start learning today and figure out how you can make your dreams happen.' Read Next: Can you guess how many retire with a $5,000,000 nest egg? .Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article A 59-Year-Old Career Nurse Feels 'Defeated And Cooked' After Learning Her Coworker Has Saved Nearly $500,000 More For Retirement originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.