The Japanese government has begun full-scale discussions on expanding imports of liquefied natural gas from the United States, believing the move will serve as a powerful bargaining chip in bilateral tariff negotiations.

In the Japan-U.S. negotiations on Tokyo's request to review the tariff policy of the administration of U.S. President Donald Trump, the focus is on what concrete measures Japan will take to reduce its trade surplus, as demanded by Washington.

In 2024, Japan imported ¥542.6 billion ($3.8 billion) of LNG from the U.S. By country, the U.S., with a share of 8.7%, was the fourth-biggest LNG exporter to Japan after Australia, Malaysia and Russia.

While Japan's LNG imports from Russia totaled ¥548.1 billion last year, diversifying suppliers is a challenge for the Asian nation from the viewpoint of energy security as the risk of supply disruption has become evident due to Russia's invasion of Ukraine.

At a meeting between Trump and Prime Minister Shigeru Ishiba in February, the two governments agreed to increase Japan's imports of U.S. LNG. Ishiba also suggested on television Sunday that it could be possible to raise the share of LNG imports from the U.S.

The Japanese side is expected to work out details based on LNG prices and other conditions, informed sources said.

In private-sector contracts, it is "important that stable procurement is ensured for the long term," an official of a major energy company said.

In the bilateral negotiations, the Japanese side is expected to work on removing policy uncertainties related to the high U.S. tariffs.

Still, it will be difficult for Japan to significantly reduce its trade surplus with the U.S., which totaled as much as ¥8.62 trillion in 2024, solely by expanding LNG imports.

By presenting to the U.S. a package of measures including those to correct nontariff barriers, Tokyo plans to ask Washington to exempt Japan from its reciprocal tariffs and additional tariffs on automobiles and other items, people familiar with the matter said.

Meanwhile, Trump has sounded eager about the U.S. and Japan jointly undertaking an LNG development project in Alaska. If realized, the project could reduce the number of days needed for LNG transportation and related costs compared with the current route via the Panama Canal.

However, the project would involve laying a 1,300-kilometer pipeline running from the north to the south of Alaska.

"I have no idea at all how much it would cost," Kingo Hayashi, head of the Federation of Electric Power Companies of Japan, said, citing a need to examine the project's details.

The Japanese side is expected to carefully assess whether and how the country should be involved in the project.

"The feasibility of the project should be scrutinized," a senior official of a Japanese government agency said.