Asian countries, including Pakistan, look to buy more US energy to offset trade imbalance

SINGAPORE: Asian governments, including Pakistan’s, are looking to buy more US oil and gas as they scramble to lower their trade surplus with Washington in hopes of easing their tariff burdens under President Donald Trump’s sweeping new import duties.

Many Asian countries run large trade surpluses with the United States and are also major energy importers.

Trump’s tariffs, which have been partially paused, have rattled economies and markets.

Below are some of the measures that Asian countries plan to bolster purchases of US oil and gas.

Pakistan

Pakistan is considering importing crude oil from the United States for the first time to offset a trade imbalance that triggered higher US tariffs, according to a government source directly involved with the proposal and a refinery executive.

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The refinery executive told Reuters that the idea is to buy US crude equivalent to Pakistan’s current imports of oil and refined products, or about $1 billion of oil.

India

India is weighing a proposal to scrap import tax on US liquefied natural gas (LNG) to boost purchases and help cut the trade surplus with Washington, a key irritant for President Donald Trump, four government and industry sources said.

It also plans to end taxes on US ethane and liquefied petroleum gas (LPG) imports.

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The country’s largest LNG importer GAIL India Ltd has issued a tender to buy an up to 26% stake in a LNG project in the United States combined with a 15-year gas import deal.

Indonesia

Indonesia will propose increasing its imports of crude oil and liquefied petroleum gas (LPG) from the United States by around $10 billion as part of its tariff negotiations, energy minister Bahlil Lahadalia told local media on Tuesday.

Bahlil said the energy ministry recommended increasing the LPG import quota for the US as well as importing more US crude to help reach the target.

Thailand

Thailand said on Wednesday it plans to import more, opens new tab US LNG and ethane over the next five years.

In addition to an existing plan to import 1 million metric tons per year of LNG worth $500 million next year as part of a 15-year plan starting in 2026 totalling 15 million tons, Thailand plans another contract for more than 1 million tons of US LNG over the next five years.

Thailand also plans to import 400,000 tons of US ethane worth $100 million over the next four years, its finance minister said.

Alaska LNG

Trump wants Japan, South Korea, and Taiwan to join the $44 billion natural gas export project in Alaska, part of Washington’s broader push on trade and tariffs.

The project aims at transporting gas south from Alaska’s remote north via a $44 billion, 1,300-km (800-mile) pipeline, to be shipped as LNG to Japan, South Korea and Taiwan, bypassing the Panama Canal.

An Alaskan delegation visited Japan in late March to brief policymakers and meet possible backers of the project.

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Japanese trading house Mitsubishi Corp may consider investing in the Alaska LNG project, though any decision will require careful review, Chief Executive Katsuya Nakanishi has said.

South Korean industry ministry officials are considering travelling soon to Alaska as part of working-level negotiations between the United States and South Korea for the project.

Last month, Taiwanese state energy firm CPC Corp signed an agreement with Alaska Gasline Development Corp to buy LNG and invest in the project, a move Taiwan’s President Lai Ching-te said would ensure the island’s energy security.