U.S. to ship more natural gas and light oil to China
Posted: Tue May 22, 2018 9:57 am
Energy exports to play 'massive' role in any breakthrough in the US-China trade talks. CNBC.
Energy will play a major role in a breakthrough in trade talks between the Trump administration and its Chinese counterparts, Treasury Secretary Steven Mnuchin told CNBC on Monday. U.S. and Chinese trade negotiators agreed this weekend to put on hold tariffs that they have threatened against one another, after China agreed to purchase more American goods. The concession could move the needle on one of President Donald Trump's major goals: reducing the U.S. trade deficit with China. To be sure, some economists have flagged challenges to increasing exports to China, from Beijing's ability to facilitate the imports to American farmers and manufacturers producing at or near full capacity. However, oil and natural gas production is one area of the U.S. economy that is indeed booming. Meanwhile, China, the engine of the global economy, is hungry for more fossil fuels as more drivers take to the nation's roads and the government seeks to generate more electric power from cleaner-burning natural gas.
U.S. liquefied natural gas projects buoyed by China import talks. Reuters.
China’s interest in reducing its trade surplus with United States through increased energy imports could advance plans for U.S. liquefied natural gas (LNG) plants, said energy executives involved in developing new facilities. The White House and China on Saturday said a U.S. trade team would travel to China to explore new energy and agricultural deals. The joint communique lowered trade tensions, lifting stock markets in Asia and the United States on Monday. There are over two dozen proposed U.S. LNG plants waiting for customer commitments to reach a final investment decision, many of them looking to China for deals. About 13 percent of U.S. LNG cargos went to China last year, according to data provider Genscape. China imported 5.6 billion cubic feet per day last year, making it the world’s largest buyer after Japan. “We see it as a positive development,” said William Daughdrill, director of health, safety and environmental at Delfin Midstream. Its chief executive was in Asia last week pursuing customers, Daughdrill said.
US shale-based LNG gushes into Asia. Nikkei Asian Review.
Liquefied natural gas originating from the U.S. is flowing into Asia at an accelerating pace, with Japan becoming the most recent country to buy the fuel under a long-term contract. Japan will begin sourcing a sizable portion of its LNG from the U.S. to improve its energy security. Tokyo also seeks to alleviate pressure from U.S. President Donald Trump's administration to address their bilateral trade imbalance. Other Asian countries are tapping this relatively new source as well, amid growing demand for energy. A tanker carrying 70,000 tons of LNG from the Cove Point terminal in the U.S. state of Maryland docked Monday at the Negishi terminal in Yokohama, operated by Tokyo Gas. The company agreed to buy about 1.4 million tons of LNG annually from the Cove Point project for 20 years. The U.S. became a net exporter of natural gas last year, taking advantage of huge reserves of shale gas from underground rock formations.
China is where demand for shale oil meets US supply. The Hill, opinion.
Despite increasing rivalry and trade frictions, the world’s two largest economies, China and the United States, are becoming increasingly interdependent when it comes to energy. On the supply side, the U.S. shale revolution is reshaping global energy markets, while China is the epicenter of demand growth. Simply put, China is where demand meets U.S. supply. S&P Global Platts Analytics forecasts that global liquids production needs to rise from just under 95 million barrels per day (b/d) in 2015 to over 105 million b/d by 2025 to meet rising world demand. Much of this supply growth will be light crude, and in particular U.S. light crude, which will account for just over 40 percent of growth in global crude output over this period.
Energy will play a major role in a breakthrough in trade talks between the Trump administration and its Chinese counterparts, Treasury Secretary Steven Mnuchin told CNBC on Monday. U.S. and Chinese trade negotiators agreed this weekend to put on hold tariffs that they have threatened against one another, after China agreed to purchase more American goods. The concession could move the needle on one of President Donald Trump's major goals: reducing the U.S. trade deficit with China. To be sure, some economists have flagged challenges to increasing exports to China, from Beijing's ability to facilitate the imports to American farmers and manufacturers producing at or near full capacity. However, oil and natural gas production is one area of the U.S. economy that is indeed booming. Meanwhile, China, the engine of the global economy, is hungry for more fossil fuels as more drivers take to the nation's roads and the government seeks to generate more electric power from cleaner-burning natural gas.
U.S. liquefied natural gas projects buoyed by China import talks. Reuters.
China’s interest in reducing its trade surplus with United States through increased energy imports could advance plans for U.S. liquefied natural gas (LNG) plants, said energy executives involved in developing new facilities. The White House and China on Saturday said a U.S. trade team would travel to China to explore new energy and agricultural deals. The joint communique lowered trade tensions, lifting stock markets in Asia and the United States on Monday. There are over two dozen proposed U.S. LNG plants waiting for customer commitments to reach a final investment decision, many of them looking to China for deals. About 13 percent of U.S. LNG cargos went to China last year, according to data provider Genscape. China imported 5.6 billion cubic feet per day last year, making it the world’s largest buyer after Japan. “We see it as a positive development,” said William Daughdrill, director of health, safety and environmental at Delfin Midstream. Its chief executive was in Asia last week pursuing customers, Daughdrill said.
US shale-based LNG gushes into Asia. Nikkei Asian Review.
Liquefied natural gas originating from the U.S. is flowing into Asia at an accelerating pace, with Japan becoming the most recent country to buy the fuel under a long-term contract. Japan will begin sourcing a sizable portion of its LNG from the U.S. to improve its energy security. Tokyo also seeks to alleviate pressure from U.S. President Donald Trump's administration to address their bilateral trade imbalance. Other Asian countries are tapping this relatively new source as well, amid growing demand for energy. A tanker carrying 70,000 tons of LNG from the Cove Point terminal in the U.S. state of Maryland docked Monday at the Negishi terminal in Yokohama, operated by Tokyo Gas. The company agreed to buy about 1.4 million tons of LNG annually from the Cove Point project for 20 years. The U.S. became a net exporter of natural gas last year, taking advantage of huge reserves of shale gas from underground rock formations.
China is where demand for shale oil meets US supply. The Hill, opinion.
Despite increasing rivalry and trade frictions, the world’s two largest economies, China and the United States, are becoming increasingly interdependent when it comes to energy. On the supply side, the U.S. shale revolution is reshaping global energy markets, while China is the epicenter of demand growth. Simply put, China is where demand meets U.S. supply. S&P Global Platts Analytics forecasts that global liquids production needs to rise from just under 95 million barrels per day (b/d) in 2015 to over 105 million b/d by 2025 to meet rising world demand. Much of this supply growth will be light crude, and in particular U.S. light crude, which will account for just over 40 percent of growth in global crude output over this period.