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Japan’s resale of US LNG to Asian buyers between 2020 and 2025 generated an estimated 63.5 billion kilogrammes of CO2.
This is equal to the annual emissions of about 17 coal plants.
Acting as a key intermediary, Japan resold large volumes of US LNG across Asia.
This drove up lifecycle emissions from production through combustion and intensified climate risks.
Japan’s resale of United States liquefied natural gas (LNG) to Asian countries between 2020 and 2025 generated an estimated 63.5 billion kilogrammes of carbon dioxide (CO2) emissions, equivalent to the annual emissions of about 17 coal-fired power plants, according to a new analysis.
The analysis, based on LNG shipment data from the Centre for Research on Energy and Clean Air and independent investigative group Data Desk, with emissions estimated across production, liquefaction, shipping, regasification and combustion stages, by Zero Carbon Analytics finds that Japan, now one of the world's largest LNG traders, has increasingly acted as an intermediary between the US and Asian markets, reselling LNG cargoes to countries including India, China, South Korea, Taiwan, Thailand, Singapore, Bangladesh, Pakistan and Malaysia.
Between 2020 and 2025, about 31 per cent of US LNG that Japan bought and resold to other countries was shipped to Asia. Starting in 2021, Japan sold more US LNG to overseas markets than it imported for domestic use. Between 2021 and 2025, Japan's overseas sales of US LNG were 77 per cent higher than its domestic LNG imports, according to Data Desk.
The report estimates that 16.5 billion kilogrammes of LNG produced in the US and shipped to Asian countries under Japanese resale contracts released 63.5 billion kilogrammes of CO2 across the supply chain.
Combustion accounted for the largest share of emissions at 78 per cent. Production and liquefaction contributed about 16 per cent, while shipping accounted for 4.8 per cent and regasification and distribution about 0.5 per cent.
The analysis notes that more than 20 per cent of emissions are released before the gas reaches power plants in Asia. Methane emissions are a major contributor. According to the report, around 30 per cent of total lifecycle emissions are linked to methane released during gas production, processing and combustion. Methane can warm the atmosphere about 80 times more than CO2 over 20 years.
The growth in Japanese LNG trading has coincided with an expansion of US LNG exports. The US became the world's largest LNG exporter in 2023 and maintained that position through 2025. In 2025, President Donald Trump lifted the previous pause on approvals for new LNG export projects and promoted the $44 billion Alaska LNG project aimed at supplying markets including Japan and South Korea.
As of May 2026, the US government had approved or reapproved exports from five new LNG terminals and one existing terminal in Louisiana and Texas.
Japan has simultaneously expanded long-term LNG procurement. In June 2025, Energy for a New Era signed multiple 20-year agreements with US LNG suppliers despite declining domestic demand. Additional multiyear supply contracts were signed in March 2026.
Southeast Asian countries have also increased LNG imports. Thailand's LNG imports rose more than 100 per cent between 2020 and 2024 as domestic gas reserves declined. In April 2025, Thailand signed an agreement to import 15 million metric tonnes of US LNG over 15 years. Three Asian countries, South Korea, China and India, ranked among Japan's ten largest destinations for resold US LNG cargoes.
The report highlights Japan’s role in financing and promoting LNG infrastructure across Asia. Between 2016 and 2024, the Japan Bank for International Cooperation financed approximately $13.5 billion in downstream coal and gas projects across Southeast Asia.
Japan is also promoting LNG through the Asia Zero Emissions Community initiative. Under the programme, Japanese and Southeast Asian companies have signed 32 agreements related to gas and LNG development projects.
In April 2026, Japanese Prime Minister Sanae Takaichi announced the Partnership on Wide Energy and Resources Resilience Asia, which includes support for Asian countries to diversify fuel supplies through LNG as part of broader energy security efforts.
The report states that global greenhouse gas emissions need to nearly halve within the next five years to remain aligned with the Paris Agreement temperature goals. It argues that additional LNG-related infrastructure could contribute to higher global emissions and increased climate risks.
The analysis points to recent extreme weather events across Asia, noting that at least 1,200 people died from major storms in Sri Lanka, the Philippines, Vietnam, Thailand and Indonesia during the final months of 2025. Flooding in Bali and storms in Chiang Mai during early 2026 also caused widespread disruption.
According to the report, increasing temperatures could heighten risks to biodiversity, food systems, water security and public health across the region.
The report points to reducing dependence on new LNG infrastructure and limiting long-term fossil fuel expansion as measures that could help contain emissions growth. It also highlights the importance of monitoring methane emissions across the LNG supply chain, given methane's high warming potential, and notes that lifecycle emissions should be considered when assessing the climate impact of LNG.