The Trump administration will begin a push to create a market in the Asia-Pacific region for U.S. energy technology and liquefied natural gas, Energy Secretary Rick Perry said Monday.
“We’ve got a tremendous opportunity to engage with the Indo-Pacific region, particularly in the energy sector,” Perry said at the Chamber of Commerce’s Indo-Pacific Business Forum, where numerous Trump administration officials outlined their approach to the region. “It’s in our interest to do so.”
Secretary of State Mike Pompeo, at the opening of the forum, announced $113 million in new initiatives to support the Asia-Pacific region’s energy, infrastructure, and digital economy, which he called “foundational areas of the future.”
The Trump administration dubs its effort “Asia Edge,” which Perry said will focus on four areas: expanding energy commerce between nations, implementing market reforms, encouraging private investment, and “promoting universal access to affordable, secure energy.”
“We will give citizens of those nations freedom and opportunity to create their own success,” Perry said. “The key to all of this is energy security, and from that comes prosperity, economic growth, and the freedom of each individual to pursue their dreams. That is exactly what Asia Edge does.”
Asia’s energy market growth provides a unique opportunity for U.S. investment, “especially advanced energy technology and LNG,” U.S. Agency for International Development Administrator Mark Green said at the forum Monday.
Perry expressed excitement about the Cove Point facility in Maryland outside of Washington, the second LNG export facility to open in the U.S., after the large Sabine Pass terminal in Louisiana.
The principal destinations for natural gas leaving Cove Point will be India and Japan.
The large Japanese conglomerate Sumitomo, the Tokyo Gas utility, and the India-based Gail Ltd. bought a 20-year stake in the facility.
Overseas Private Investment Corporation chief Ray Washburne announced at the forum that his agency plans to open a first-time office in Japan to match LNG development there. Japan is already the world’s largest LNG importer.
Perry also said the Energy Department is working with Japan on “greater commercial cooperation in nuclear energy.”
He said that Dan Brouillette, deputy secretary of the Energy Department, will soon travel to Japan for a forum on decommissioning the country’s nuclear plants.
But Perry added he still sees opportunity for nuclear power in Japan, more than seven years after the Fukushima nuclear disaster. The U.S. is working on producing small modular reactors that he hopes Japan would use.
The smaller reactors would be cheaper to create, contain less fuel and energy, and operate with lower risk of accidents, proponents say.
“There is a transition period going on in Japan, and I don’t think it’s away from nuclear power,” Perry said. “It’s to more efficient nuclear power.”
Outside of Japan, Washburne said his agency recently approved debt financing for what will become the largest wind farm in Asia in Indonesia, and another wind farm in India, in addition to LNG terminals in Vietnam.
Green added that USAID will help “combat corruption” in Asia-Pacific countries in order to help U.S. companies get the best deals in doing business in the region.
Ongoing efforts have already helped create a “level playing field” where companies like GE have become “confident enough to place bids,” the USAID chief said.
Other areas of opportunity include building out the electricity grid in the region, including advanced “smart grid” technologies and even mobile apps to allow consumers to pay bills online, he added.
“America’s role is to show here’s how you can have energy security, here is how you can have energy accessibility and affordability, and heading this part of the world in the right direction with climate [change],” Perry said.
