US and Japan Collaborate to Expand Global LNG Markets Amid Rising Supply

The United States and Japan aim to develop foreign liquefied natural gas (LNG) markets, with the US seeking export opportunities and Japan investing in infrastructure and demand stimulation. The global LNG supply is set to increase by nearly 230 million tons per year from 2025 to 2030, with US projects accounting for over half of the anticipated supply surge.

Japan's energy strategy, outlined in its seventh Strategic Energy Plan (7SEP), emphasizes long-term contracts for supply security. While Japan's LNG imports decreased from 77 million tons in 2019 to 66 million tons last year, the government prefers to maintain an oversupply to avoid shortages.

The US administration supports LNG exports through various agencies, including the DFC and EXIM, to bolster energy security. Both countries share interests in enhancing LNG market demand, particularly in Southeast Asia, where Japan's institutions could facilitate joint investment opportunities.