On September 18, China petroleum economics and technology research institute released the 2018 edition of world and China energy outlook in 2050. According to the outlook, China’s natural gas gold development period will last until 2040. Natural gas consumption growth will peak in 2020 and then decline. In 2050, the consumption of natural gas is close to 700 billion cubic meters, and domestic production is expected to be 350 billion cubic meters, with a gap of up to 350 billion cubic meters.
China has such a huge gas market and “tariffs” are a direct deterrent to the us. The United States is losing huge market share, with losses of up to $100 billion.
China’s oil and gas tariffs will put additional pressure on the U.S. natural gas industry, which is competing with Russia, Australia and Qatar for market share of the world’s largest buyer, according to a Reuters analysis.
According to Sanford c. Bernstein&Co, a prominent American economist, China is the third-largest buyer of oil and gas in the United States, and its purchasing power is growing during that time. But as the tariffs rise, American oil companies will lose China’s share, with losses of up to $50 billion.
In addition, standard & poor’s believes that China’s oil and gas tariffs will close the door to us oil and gas imports. “” the proposed 10% tariff instead of a 25% tariff is not that harsh, but it would still push Chinese buyers to other potential sellers in Asia and the Middle East,” “said Madeleine joy, senior director of global natural gas and LNG at standard & poor’s global platz in New York.
“” traditional sellers like Qatar had a lot of unsold LNG in the 1920s,” “she said. “It is clear that traditional sellers such as Qatar will be quick to respond by selling LNG to China as an alternative to U.S. LNG rejected by tariffs.”
Not long ago, that fear became a reality when petrochina decided to buy qatari LNG for a hefty sum instead of liquefied natural gas from the us.
Qatargas announced on sept 10 a 22-year LNG sales and purchase agreement with petrochina.
Qatargas will provide about 3.4 million tons of LNG a year to China, according to a news release, under an agreement that will run from 22 to 2040.
Post time: Sep-20-2018