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Trump Natural Gas Diplomatic Strategy Analysis
Nov 11, 2017

On November 8, 2017, U.S. President Trump made his first visit to China. Of the 29 corporate executives and government officials accompanying the delegation, 10 are energy related, of which 6 are natural gas related, including Cheil Energy, the first US LNG export terminal developer, Delfin Midstream LNG, Texas LNG, Freepoint Commodity Investment Trading, Alaska Gas Pipeline Development, and Alaska Governor.


The Trump's visit to China and the United States or to sign tens of billions of dollars in economic and trade and investment agreements, energy cooperation will be the top priority, it will promote the US LNG exports to China, which is Trump's balance of trade deficit with China there The pivotal role will reduce the United States' double-counter pressure on China's exports of steel and tires to the United States. And when Trump visited Poland three months ago, he also vigorously promoted the U.S. LNG to the Polish government.


In February 2016, with the entry into force of the Obama presidential ban, SabinePassLNG from the United States exported the first LNG ship to the United States from AsiaVision. In June the same year the completion of the expansion of the Panama Canal, the shale gas revolution in the United States influence not only the United States, but also through the Panama Canal will reach and affect Asia and the global natural gas LNG market.


Compared to other fossil fuels, natural gas is a high quality energy source with less carbon per unit of heat, high efficiency and high efficiency. However, the distribution of natural gas production is very uneven. With the implementation of the Paris Climate Agreement, every country needs to maintain its economic growth while participating in global warming management. This requires that natural gas with uneven distribution in the future will need to increase its trade volume through management or LNG. Realize the energy resources balance and safe supply of natural gas-rich countries and poor countries.


The above-mentioned Paris climate agreement arrangement is in line with the basic principle of "unification of trade and facilities" and "smooth flow of trade" advocated by the "Belt and Road Initiative" in our country. Energy cooperation between nations through the "One Belt and One Road" initiative can effectively solve the "paradoxical imbalances" of new conflicts and conflicts between the growing demand for economic development and environmental protection and the energy distribution, and create a harmonious and beautiful "energy and environmental fortune community".


At present, the regions where the global LNG production capacity is rapidly expanding are mainly concentrated in the United States and Australia. It is estimated that the global LNG production capacity will reach 100 million tons by 2020. In addition, North America, Russia and East Africa also have a lot of planned or completed planned and under construction LNG projects.