China trade conflict has not hurt US LNG demand: US deputy energy secretary
The trade conflict with China has not hurt demand for US LNG exports or dampened investment interest in the next wave of export terminals, Deputy Energy Secretary Dan Brouillette said Saturday at the G20 energy meeting in Japan.
“I suspect in the very near future we’ll have an agreement that is fair to both countries,” Brouillette said at a press conference on the sidelines of the meetings. “We have not noticed any appreciable downtick or downturn in the sale of LNG. We’ve also not seen any impact on the production of LNG in the United States. It continues to rise.”
Many analysts do not share Brouillette’s assessment of the trade dispute on US LNG development.
Some have said it is causing pressure from buyers for shorter, more flexible terms and use of international indexes to structure new offtake contracts is making it difficult for some developers to sign deals.
Brouillette said Asian demand for US LNG continues to grow, with 40% of exports heading to South Korea, Japan and China in the past two years. He said the US is eager to build infrastructure to meet that demand.
The deputy secretary said natural gas from the US would remain the biggest contributor to growth in international trade, citing the International Energy Agency.
“What is ours can be yours, and we look forward to this continued growth in working with each of the G20 nations as they pursue energy diversity and security,” he said.