Asian Nations Aim to Boost US Oil and Gas Imports to Reduce Trade Surplus

Several Asian governments, including Pakistan, are exploring increased purchases of American oil and gas. This move is designed to decrease trade surpluses with the U.S., potentially alleviating tariff pressures under President Donald Trump’s import policies.

Many Asian nations maintain significant trade surpluses with the United States while also being substantial energy importers. The tariffs imposed by Trump have created turbulence in economies and financial markets, despite some pauses.

Here are specific strategies Asian countries are considering to amplify their procurement of U.S. oil and gas:

Pakistan

Pakistan is evaluating the feasibility of importing crude oil from the U.S. for the first time. This initiative is aimed at rectifying a trade imbalance that has led to elevated U.S. tariffs. A government source familiar with the plan, along with a refinery executive, confirmed this consideration.

The proposal involves purchasing U.S. crude equivalent to Pakistan’s current oil and refined product imports, approximating $1 billion in value.

India

India is contemplating the elimination of import taxes on U.S. liquefied natural gas (LNG) to stimulate purchases and diminish its trade surplus with the U.S., which has been a point of contention with President Trump. Sources from the government and industry have indicated this possibility.

Plans are also in place to eliminate taxes on U.S. ethane and liquefied petroleum gas (LPG) imports.

GAIL India Ltd, a major LNG importer in the country, has launched a tender to acquire up to a 26% stake in a U.S. LNG project, accompanied by a 15-year gas import agreement.

Indonesia

Indonesia intends to propose an increase in its crude oil and liquefied petroleum gas (LPG) imports from the U.S. by about $10 billion as part of ongoing tariff negotiations, according to statements made by Energy Minister Bahlil Lahadalia to local media on Tuesday.

Bahlil noted that the energy ministry has suggested raising the LPG import quota for the U.S. and importing additional U.S. crude to meet the set target.

Thailand

Thailand announced its intentions on Wednesday to augment imports of U.S. LNG and ethane over the next five years.

Beyond an existing arrangement to import 1 million metric tons of LNG annually, valued at $500 million, as part of a 15-year plan commencing in 2026 and totaling 15 million tons, Thailand is planning an additional contract for over 1 million tons of U.S. LNG in the coming five years.

The nation also plans to import 400,000 tons of U.S. ethane, worth $100 million, within the next four years, as stated by its finance minister.

Alaska LNG

Trump is encouraging Japan, South Korea, and Taiwan to participate in the $44 billion natural gas export venture in Alaska, aligning with Washington’s broader trade and tariff strategies.

The project focuses on transporting gas from northern Alaska through a $44 billion, 1,300-km pipeline, for shipment as LNG to Japan, South Korea, and Taiwan, thus avoiding the Panama Canal.

An Alaskan delegation visited Japan in late March to brief officials and engage with potential project backers.

Japanese trading firm Mitsubishi Corp is considering investing in the Alaska LNG project, although CEO Katsuya Nakanishi emphasized that any decision would require thorough evaluation.

Officials from South Korea’s industry ministry are planning a trip to Alaska soon as part of ongoing discussions between the United States and South Korea regarding the project.

Last month, Taiwanese state energy company CPC Corp finalized an agreement with Alaska Gasline Development Corp to procure LNG and invest in the project. Taiwan’s President Lai Ching-te affirmed that this initiative would bolster the island’s energy security.