A potential increase in U.S. fossil fuels production and liquefied natural gas exports under Donald Trump’s incoming presidency could result in lower fuel prices, benefiting Japan, the head of the country’s utilities federation said on Friday.

Trump has made clear he intends to swiftly lift a moratorium on new LNG export permits imposed by President Joe Biden’s administration, something his advisers say could happen within hours of his inauguration on Jan. 20.

Japan is the world’s second-biggest LNG buyer after China, with the United States accounting for less than 10% of its total imports.

“The U.S. is one of the most important countries in diversifying procurement sources, and if U.S. LNG exports increase under the Trump administration, it would be a good thing for Japan,” Kingo Hayashi, the chairman of Japan’s federation of electric power companies, told a news conference.

Higher U.S. oil and gas production and LNG exports would be a welcome development as it would provide Japan more energy options, he said.

“It would be beneficial to Japan if we could import cheap energy from the U.S. on a stable basis,” he said.

However, he also cautioned: “We must also assess how the broader policy package will impact the Japanese economy, so we will closely monitor future developments.”

Trump has promised to maximize U.S. oil and natural gas production, already at record highs, in part by clearing away what he deems as unnecessary regulation and bureaucracy.

Source: Reuters