The on-going U.S.-China trade dispute would crimp the expansion of U.S. liquefied natural gas (LNG) supply capacity, a senior analyst with the consulting firm Wood Mackenzie has said.
The trade dispute is a barrier to the signing of more long-term deals between China and the United States on the LNG supply, said Alex Munton, principal analyst for Americas LNG research at Wood Mackenzie during a recent webinar of the consulting company, agency reports. China now has little exposure to the U.S. market, with only one long-term LNG purchase agreement signed so far, according to Munton.
“The longer the dispute rumbles on, the more downside there is with respect to U.S.-China LNG trade,” he said. Since the trade war began, U.S. LNG export to China has essentially grounded to a halt pending a resolution of trade negotiation, Munton said. “In the events of a resolution, it’s all upside.” The potential for both LNG demand growth from China and that for LNG supply growth from the United States is huge, said the analyst. China and the United States are expected to become the world’s largest LNG importer and exporter respectively by 2024, according to the latest forecasts by the International Energy Agency.
