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LNG World Shipping

LNG World Shipping

Beijing boost for US LNG

Wed 17 May 2017 by Karen Thomas

Beijing boost for US LNG

If you’ve been wondering how Donald Trump’s presidency will affect US LNG exports, here is a clue.
The US has just signed a major trade deal with China. China, one of the world’s fastest-growing importers of LNG, to the fastest-growing exporter.

The first wave of US LNG-export projects contracted cargoes to South Korea, Japan and India. Chinese buyers were notably absent. Many analysts expected China to contract LNG from new projects in western Canada instead. But these projects have stalled.

Analyst Wood Mackenzie expects China to import 75 million tonnes a year of LNG by 2030 – nearly three times more than the 26 million tonnes China bought last year.

In today’s terms, China could spend up to US$26 billion dollars on LNG by 2030. No wonder the Trump administration sees China as a hot market for chilled gas.
Sabine Pass investor Cheniere is already circling China, hoping for a long-term supply deal.

last week’s agreement may drive a second wave of US LNG-export terminals, to target Chinese demand.