US, China trade deal will boost Texas LNG shipments

Fuel Fix:
A new deal struck between China and the U.S. links the world’s largest liquefied natural gas growth market to the fastest-growing LNG exporter, and may encourage a new round of expansion along the Gulf Coast.

The U.S. Commerce Department announced yesterday a 100-day action plan between the U.S. and China that allows Chinese companies to negotiate long-term contracts to source LNG from U.S. suppliers. Energy research firm Wood Mackenzie said the deal has the potential to alter global LNG trade.

RELATED: Texas Gulf Coast is hotbed of LNG activity as global demand grows

WoodMac expects Chinese LNG demand to reach 75 million metric tons per year — or about $26 billion at today’s prices — by 2030, triple the current amount of LNG imports. “The U.S. is keen for a slice of the pie,” said Massimo Di-Odoardo, WoodMac’s head of global gas and LNG research.
This deal should speed the approval of several LNG projects slated for the Texas coast from Brownsville to the Sabine Pass.  It should also stabilize prices in the natural gas market where new wells in the Permian Basin have added to the supply.


  1. But also see "World stocks mixed on Trump fallout, watch G-7 meeting," Associated Press, 05-12-2017, The Brownsville Herald,

    And don't forget the strong local opposition to the proposed Rio Grande LNG, Annova LNG, and Texas LNG operations at the Port of Brownsville. Four local communities passed resolutions against LNG in 2015, a school district has rejected Texas Economic Development Chapter 313 tax break requests from the two LNG companies seeking such tax breaks (Rio Grande and Annova), and the County Commissioners tabled and show no indication of returning to the tax break Annova requested. Visit saveRGVfromLNG on Facebook at:


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