ExxonMobil bets big on China LNG, sidesteps trade war
Next year, China will become the world’s largest importer of natural gas, with LNG imports forecast to rise 70pc by 2020, from 38.1 million tonnes last year
As the Sino-US trade spat rumbles on, the world’s largest publicly traded oil and gas company is turning toward Beijing for business at a time when most of corporate America is looking elsewhere to avoid the threat of tariffs.
ExxonMobil is placing big bets on China’s soaring liquefied natural gas (LNG) demand, coupling multibillion-dollar production projects around the world with its first mainland storage and distribution outlet.
Its gas strategy is moving on two tracks: expanding output of the super-cooled gas in places such as Papua New Guinea and Mozambique, and creating demand for those supplies in China by opening Exxon’s first import and storage hub, according to an Exxon manager and people briefed on the company’s plans.
That combination “will guarantee us a steady outlet for lots of our LNG for decades,” said the Exxon manager authorised to discuss the project and who spoke on condition of anonymity. One of the company’s top policy goals this year, the manager said, is building its Chinese client roster.
“China’s natural gas demand is rising really fast, with imports soaring well over 10 per cent annually at the moment because of the government gasification programme and due to fast rising industrial demand, including in petrochemicals.”
