US LNG faces Asian buyer blowback as tariffs, costs and politics bite

[SINGAPORE] Asian energy buyers are rethinking their long-term bets on US liquefied natural gas (LNG) – increasingly seen as a geopolitical lever – as tariffs, political risk and volatile costs cloud the appeal of the US as a reliable trading partner. Experts say this shift could open the door to rival exporters, as Asia moves to diversify its supply sources.

Underscoring this is a once-flagship US$44 billion Alaska LNG project – revived under US President Donald Trump and pitched as a fast-track export route to Asia – which is struggling to secure regional backing, despite being used as a bargaining chip during the 90-day tariff pause since Apr 9.

While reports indicate that US’ allies such as Japan and South Korea have expressed interest in participating in the project, no financial commitments have yet been made by any Asian buyer. This underscores broader hesitancy amid Washington’s protectionist turn and rising infrastructure costs, experts say.