US natural gas exports set to jump as Donald Trump-Xi Jinping summit deal kicks in
Cheniere Energy of the US will supply China National Petroleum with about 1.2 million tonnes of LNG annually through to 2043
China National Petroleum Corporation and US natural gas supplier Cheniere Energy have reached an agreement that will boost US exports of liquefied natural gas, in the biggest development among the deals announced during US President Donald Trump’s trip to Beijing in November.
Cheniere will supply CNPC with about 1.2 million tonnes of LNG annually starting this year and continuing through to 2043, according to an announcement by the US company, which did not put a value on the shipments.
The volume of LNG contracted is worth about US$263 million per year, according to the average LNG export price posted by the US Energy Information Administration. That value does not take into account discounts for long-term supplies or other factors specific to the deal.
Trump and Chinese President Xi Jinping witnessed the signing of deals billed to be worth US$253 billion during the US leader’s state visit to China, although some pundits pointed out that many components of the package were memorandums of understanding or other non-binding accords, including the CNPC-Cheniere accord.
More than a year into his tenure, Trump is under pressure to show results in his efforts to bring more balance to the US trade relationship with China. Although the president made this a top priority when he took office, the US trade deficit with China, its biggest trading partner, grew to a record US$276 billion in 2017.