TOKYO, Jan 17 (Reuters) - 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.