Overview

• In mid-July, Vietnam’s prime minister and major Japanese and South Korean utilities proposed 20-year U.S. LNG purchase agreements to head off President Trump’s tariff threats
• Energy experts warn these long-term deals create infrastructure lock-in that could delay deployment of solar, wind and other clean energy technologies in Asia
• Analysts highlight the contracts’ financial risks, citing high U.S. gas prices, a global supply surplus and take-or-pay penalties if demand falls
• U.S. LNG exports climbed to a record in 2023 after the Biden administration paused new approvals and have accelerated under President Trump’s export push
• Observers say Asia would need to import volumes far above current U.S. capacity to meaningfully narrow trade deficits through LNG purchases