Trade fears throw future of US natural gas into question

U.S.-China trade tensions threaten a promising area of growth in U.S. energy: natural-gas exports.

While the trade dispute hasn’t impacted near-term prices, some analysts believe it could disrupt exports and slow new infrastructure expansions. That could weigh on natural-gas prices in the longer term because U.S. producers are quickly running out of places to sell an unrelenting rush of supply.

Earlier this month, in response to U.S. tariffs, China proposed its latest round, including a 25% levy on liquefied natural gas, or LNG.
The two countries on Thursday announced they would hold lower-level talks on trade issues later this month.

If the sides can’t come to an agreement, natural-gas tariffs in China could lead to opportunities for other major LNG exporters, such as Australia and Qatar, if U.S. gas becomes more expensive. China also may tap supply from Russia via a major pipeline under construction, or from its own domestic production in the coming years, analysts said.

“China will look elsewhere in the world to source the commodities they need,” said J. Alexander Blackman, senior executive at Standard Delta LLC, a Houston-based commodities firm with operations in Asia.

https://www.msn.com/en-us/money/markets/trade-fears-throw-future-of-us-natural-gas-into-question/ar-BBM2VPb?li=BBnbfcN

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