Chinese Demand Growth

15 May 2017: Last week, the United States and China reached a preliminary 10-point trade agreement which included a statement on LNG imports. Although there is not a specific regulatory impediment on Chinese firms importing U.S. LNG, there have yet to be any term contracts signed directly between a U.S. liquefaction project and Chinese buyers. While the statement does not contain any material changes in trade policy, it may provide assurance to reluctant Chinese buyers looking to enter into direct supply agreements with U.S. projects. After the announcement by the U.S. Commerce Department, Cheniere Energy followed suit stating it has held “extensive negotiations” with Chinese buyers. There is still a long way from announcements to the signing of definitive term Sale and Purchase Agreements (“SPAs”), but term deals between the U.S. and China could have a material impact on LNG trading patterns and shipping demand. Please fill out the following form to access the full article.