US Can Double LNG Exports to Japan, Oklahoma Governor Says

Oklahoma Governor Kevin Stitt has stated that the US can more than double its liquefied natural gas (LNG) exports to Japan, providing an alternative to Japan's existing Russian supply, Nikkei Asia reports. The governor, speaking in an interview in Oklahoma City, touted the US's burgeoning energy sector's potential to meet the growing global demand.

"We're going to unlock innovation and drilling and exploration" under President Donald Trump, making energy "more affordable," Stitt said. "It's also going to deliver a resource to our friends and allies around the world," including in Europe and Asia.

Trump has actively encouraged European and other nations to increase their purchases of American oil and natural gas. He is expected to raise this topic with Japanese Prime Minister Shigeru Ishiba at their upcoming summit.

The US is currently the world's largest producer of natural gas, with Oklahoma contributing 7% of the nation's total output. The state is home to major shale operators such as Devon Energy and Continental Resources, and Stitt described Oklahoma as the "pipeline capital of the world." Natural gas from the state is transported via pipelines to facilities on the Gulf of Mexico for processing into LNG and subsequent export.

Stitt's comments come as Japan seeks alternative LNG sources following the expiration of long-term supply contracts with Russia's Sakhalin-2 oil and gas projects in the late 2020s. The US and Russia currently each account for approximately 10% of Japan's LNG imports by volume. The governor expressed his ambition to see Oklahoman and other American natural gas sources grow to "around 25%" of Japan's imports.

To facilitate this increase, Stitt called for streamlining the permitting process for new interstate pipelines. He cited the current Democratic-led administration's slow approval of new projects due to environmental concerns as a major obstacle.

"Permitting reform across states is just hugely problematic with the federal bureaucracy," Stitt stated.

While opposing a complete repeal of the Inflation Reduction Act (IRA) of 2022, which includes renewable energy and electric vehicle initiatives, Stitt acknowledged the need for potential revisions.

"We cannot keep deficit-spending. We have to spend what our revenue is," he said.

Stitt also advocated for ending tax credits for wind power, arguing that the technology is already cost-competitive.

"We're hurting ourselves because we're choosing wind energy over natural gas, and we need to let the market determine that," he said.