CHINA: A BIG TX LNG CUSTOMER - Texas natural gas is now on China’s list of American goods facing a 10% retaliatory tariff, a result of growing trade tensions which has the energy industry concerned. China is the third-largest importer of U.S. liquefied natural gas. Most is exported from a facility on the Texas-Louisiana border. Similar terminals costing in the billions of dollars are in the works up and down the Texas coast.
The LNG industry and Houston business leaders have warned such an escalation in trade tensions could jeopardize LNG deals and the future of those
facilities and the jobs that go with them.
University of Houston economist ED HIRS shares his observations with Texas Public Media. He said “If this keeps expanding, and there continues to be a tit-for-tat retaliation, this will cause diminished economic activity for everyone involved.”
Still, some are staying optimistic. Recently the head of Cheniere Energy, the nation’s largest LNG exporter, was quoted as saying the business is a “very long-term one,” and that it’s continuing to “solidify” relationships in China.