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Commenting on US Commerce Secretary Wilbur Ross` talk that China`s simplest solution to reduce its trade gap with the US is to buy more US liquefied natural gas (LNG). a Chinese energy expert said the US is making a stupid move.
`China. in its huge demand for LNG. is naturally inclined to import more US LNG and has actually imported some in 2017 and holds significant orders under long-term contracts.` said Lin Boqiang. director of the China Center for Energy Economics Research at Xiamen University. `However. waging a trade war against China will effectually stop such momentum.`
Lin noted that despite its longer transportation distance. US LNG could still be cheaper than the aggregate average price of LNG bought by China currently. China is currently the world`s second-largest LNG importer.
`The US enjoys a marginal competitiveness over other LNG suppliers. However. it is not so cheap that China will face significant loss if it opts for other buyers. As a buyer. China can pick who will be the seller.` Lin told the Global Times on Friday.
`China needs to import very. very large amounts of LNG and from their point it would be very logical to import more of it from us.` US Secretary of Commerce was quoted as saying in a Bloomberg report on Thursday.
China is in the urgent process to expand its consumption of natural gas. the cleanest of fossil fuels. to improve its air quality and aid anti-smog efforts. The consumption rate of natural gas stood at about 15 percent annually in recent years.
In late 2017. the country experienced a natural gas supply crunch amid a program to convert more than 5.5 million households from coal to natural gas.
Currently. China imported natural gas from pipelines from Central Asia and Myanmar as well as seaborne LNG from countries including Australia.
`It would be a shame for the US. as the LNG trade. at its current growth rate and volume. could likely grow larger than that of Sino-US steel trade in the future.` Lin said.
During President Trump`s first state visit to China in November 2017. US LNG export player Cheniere Energy penned LNG sales and purchase agreements with State-owned China National Petroleum Corporation.
