Oklahoma Governor Kevin Stitt has proposed increasing U.S. liquefied natural gas (LNG) exports to Japan, aiming to raise the current share from approximately 10% to 25% of Japan’s total LNG imports. This initiative seeks to capitalize on the expiration of Japan’s long-term contracts with Russia’s Sakhalin-2 project in the late 2020s.
The United States is the world’s leading natural gas producer, with Oklahoma contributing 7% to the national output. Major shale operators in the state include Devon Energy and Continental Resources. Natural gas from Oklahoma is transported via pipelines to Gulf Coast facilities, where it is processed into LNG for export.
Stitt emphasizes the need for federal reforms to expedite interstate pipeline approvals, citing current regulatory processes as obstacles to increasing exports. He advocates for streamlining these processes to facilitate further investment and growth in the energy sector.
Japan remains a significant player in the global LNG market, importing approximately 71.5 million metric tons in recent years. With upcoming expirations of supply contracts from Russia, Japanese utilities are seeking stable alternatives. U.S. LNG is considered a viable option due to its price transparency and reliability.
Stitt’s recent visit to Japan underscores Oklahoma’s commitment to strengthening trade relations and positioning the state as a key contributor to Japan’s energy security. However, achieving the proposed increase in exports will require significant infrastructure improvements and regulatory support.
