The Dilemma Between LNG Production and Environmental Protection: The Responses of the US and Japan

The global LNG (Liquefied Natural Gas) market has undergone significant changes recently due to Russia's invasion of Ukraine and the ensuing energy crisis in Europe. The United States has emerged as the world's leading LNG exporter, accounting for 21% of global LNG exports in 2023. With Russia's gas supply decreasing, US LNG exports to Europe have reached 67%, leading to an unprecedented boom in the American LNG industry.

The US government anticipates a doubling of LNG exports by 2030. However, citing concerns about energy security and environmental impact, the Biden administration has temporarily halted LNG exports to countries without Free Trade Agreements (FTAs). This policy has garnered support from environmental groups advocating for a transition away from fossil fuels, but it has also faced criticism for hindering Europe's efforts to reduce its reliance on Russian energy.

Thus, US LNG policy is grappling with the challenge of achieving both energy security and environmental protection. With Biden and Trump expected to clash on LNG policy in the upcoming presidential election, the US energy policy could undergo a 180-degree shift.

Meanwhile, Japan, one of the world's largest LNG importers, holds high hopes for US-produced LNG. The Japanese government and businesses anticipate that increased US LNG exports will benefit both energy security and the economy. However, there are concerns about the potential impact of changes in LNG policy should a Trump administration take office. It is reported that Japanese companies are preparing for various scenarios in anticipation of the post-election landscape.

The recent surge in natural gas demand triggered by the European energy crisis and sanctions against Russia has made increased LNG production unavoidable. While LNG is more environmentally friendly than coal, its production and transportation processes generate a considerable amount of greenhouse gases. This has led environmental groups to oppose LNG development. Conversely, industries and governments view LNG as a transitional energy source and are pushing for increased production.

The debate surrounding LNG is characterized by sharp disagreements. Achieving both secure energy supplies and environmental protection is no easy feat. Therefore, governments and businesses are likely to intensify efforts to reduce greenhouse gas emissions during LNG development, production, and transportation. Furthermore, a parallel transition to renewable energy sources should be pursued in the long term.