Publication

INTRODUCTION

In 2016, the U.S. began exporting liquefied natural gas. Only eight years later, it has become the world’s largest exporter of LNG, shipping 86 million tons internationally in 2023. The growth of U.S. gas production facilitated the retirement of coal plants domestically, bolstered U.S. exports, offered a powerful foreign policy lever, and offered employment to more than 4 million Americans. Furthermore, it allowed the U.S. to fill energy shortfalls in Europe following Russia’s invasion of Ukraine, which compelled European nations to reduce their usage of Russian hydrocarbons and caused Moscow to shut down Nord Stream 1 (which was then destroyed in suspected sabotage). As a result, Europe required new sources of natural gas, and the United States was perfectly positioned to mitigate these shortages. From 2021 to 2022, U.S. LNG exports to Europe increased a remarkable 119%. However, this came at the cost of U.S. LNG exports to Asia, which fell by nearly 50%.

Asia is the largest importer of liquefied natural gas and leads the world in primary energy consumption. In 2022, the top three importers of LNG were comprised of two key allies and Washington’s chief international competitor: Japan, South Korea, and the world’s largest GHG emitter, China. All three of these countries consume vast amounts of energy and are highly reliant on fossil fuel energy imports. Although a growing capacity exists to fill these needs with renewable energy, such resources are currently unable to fully meet the requirements for balanced electricity grids and industrial applications. The U.S. is not the primary energy supplier in Asia, but U.S. LNG supply plays a critical role in reducing these nations’ emissions, as U.S. natural gas emits less greenhouse gas than coal, oil, and most other natural gas supply chains. In addition, U.S. natural gas provides energy security to allies, such as Japan and South Korea, in case of disruption or conflict. Ensuring access to sufficient supplies of low-emissions natural gas, accompanied by other innovative, low-carbon, and exportable energy technologies, is vital to American interests. Therefore, the uncertainty created by the Biden administration’s LNG pause risks reducing energy security for U.S. allies in East Asia, weakening Washington’s national security, and exacerbating global climate change.

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