See More on Facebook

Economics

Cooperating on energy in face of tariffs

At Houston oil and gas industry forum, US, China executives discuss future.


Written by

Updated: September 25, 2018

The US energy industry expects a strong long-term energy relationship with China, a US energy official told US and Chinese oil and gas executives the day after China announced a retaliatory 10 per cent tariff on US natural gas.

Steve Winberg, US Energy Department assistant secretary for fossil energy, on Wednesday assured the energy executives that the US has never revoked a liquefied natural gas (LNG) export authorization, nor plans to do so.

“Some potential exporters and financiers have expressed concern that the US may rescind or revoke LNG export authorization. Let me be very clear that these concerns are unfounded,” Winberg said on Wednesday at the opening of the two-day 18th US-China Oil and Gas Industry Forum in Houston.

The forum has been a collaboration of the US Energy Department, China’s Ministry of Commerce and the US Energy Association (USEA).

On Tuesday, China announced retaliatory tariffs on $60 million worth of US goods, including a 10 per cent tariff on LNG, effective Sept 24, and an increase to 25 per cent by Jan 1.

Winberg said that there are two LNG export terminals in operation in the US with a capacity of 3.5 billion cubic feet per day. Four more are under construction and expected to be completed by 2020. That will bring the total LNG export capacity to 11 billion cubic feet per day for the US.

The government has authorized facilities that will provide 10 additional billion cubic feet LNG per day of export capacity, but those have not reached investment decisions yet.

“The department has approved more than 21 billion cubic feet LNG per day of LNG exports. In each case we did not find the LNG export was not in public interest,” Winberg said.

The US has become the world’s largest oil and gas producer and can supply a growing energy demand in China, he said and encouraged US companies to increase their efforts to work with Chinese enterprises.

Li Ye, executive director for regulation at the National Energy Administration of China, said the potential for bilateral cooperation in oil and gas are huge as China has become the world’s No. 1 crude oil importer and No. 2 LNG importer.

Li said recent oil and gas deals between China and US are valued at $16 billion and are moving forward, but the challenges can’t be ignored.

Only 2 per cent of China’s crude oil imports and 4 per cent of China’s LNG imports come from the US. China’s increasing demand and the US’ increasing supply capacity is a great opportunity for both, Li said.

USEA Executive Director Barry Worthington said that the US-China energy relationship is symbiotic and for the long term. He believes the current trade dispute will be short-term and that a deal satisfying both sides will be achieved in the near future.

Worthington said that this is the largest forum in the past 20 years because it is held in Houston, home to a large concentration of energy companies.

“It is also because that for the first time the US is exporting energy products to China. This illustrates how much interest there is to maintain this relationship,” he said.

While he believes that Winberg will certainly report to the White House what transpires at the forum, the event’s focus is more technical than policy-oriented, Worthington said.

“The industry in the US and China has developed a good professional relationship through the forum. … They have become not only professional colleagues but also friends. There are awkward moments and situations sometimes, but at the end of the day, they are still friends,” Worthington said.



Enjoyed this story? Share it.


Cod Satrusayang
About the Author: Cod Satrusayang is the Managing Editor at Asia News Network.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Economics

Saudi Crown Prince arrives in India

Ready to share intelligence, cooperate with India to eliminate terrorism: Saudi Crown Prince. India and Saudi Arabia on Wednesday exchanged memorandums of understanding (MoUs) after talks by Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman. MoUs on tourism, cooperation in the field of housing, International Solar Alliance among others were exchanged between the two countries. On his first state visit to the country, Prime Minister Narendra Modi welcomed the Saudi Crown Prince saying that Saudi Arabia was India’s “close friend”. India and Saudi Arabia have a longstanding relationship, PM Modi said adding that in the 21st century, Saudi Arabia was among India’s most important strategic partners. The Prime Minister, in a joint press conference with Crown Prince Mohammed bin Salman, also welcomed Saudi investment in Indian infrastructure. I


By The Statesman
February 21, 2019

Economics

‘No rush’ on NK denuclearization, Trump says

Trump and Kim are due to meet in Vietnam at the end of this month. US President Donald Trump said on Tuesday that he had no strict timeline for North Korea’s ultimate denuclearization as negotiators from the two countries head to Vietnam for last-minute talks ahead of a second summit next week. “I’m in no rush. There’s no testing. As long as there is no testing, I’m in no rush,” Trump told reporters at the White House after a phone conversation with South Korean President Moon Jae-in. “I’d just like to see, ultimately, denuclearization of North Korea,” he said. The US president made similar remarks last week, in an apparen


By The Korea Herald
February 21, 2019

Economics

Vice-Premier Liu to visit US for trade talks

Talks have been progressing but hopes that trade war will be scaled down remains low. News At the invitation of the US, Vice-Premier Liu He will visit Washington for the seventh round of high-level economic and trade talks on Feb 21-22, said a statement by the Ministry of Commerce on Tuesday. Liu, who is President Xi Jinping’s special envoy and chief of the Chinese side of the China-US comprehensive economic dialogue, will meet US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin. China Daily Editorial  In welcome news, it seems that the latest talks between China and the United States, which concluded on Friday, have further narrowed their differences and expanded their common ground on key trade and economic issues. The two sides entered the two days of high-level talks on Thursday amid a flu


By China Daily
February 20, 2019

Economics

Saudi Arabia signs 20 billion USD in agreements with Pakistan

‘Pakistan will be a very important country in coming future,’ says Saudi crown prince. Saudi Crown Prince Mohammad bin Salman on Sunday expressed optimism about the economic future of Pakistan, saying his country had been waiting for a leadership like that of Prime Minister Imran Khan to partner with Islamabad in various areas. Addressing a reception dinner at Prime Minister House hours after arriving in Pakistan, the crown prince — known as MBS for short — said Pakistan is a “dear country” to all Saudis and that the two countries “have walked together in tough and good times”. He said Pakistan today had a great future in store “with a great leadership”, and noted that the country’s GDP grew by 5 per cent in 2018. “We believe that P


By Dawn
February 19, 2019

Economics

Saudi prince arrives in Pakistan to start Asia tour

The crown prince will follow up his visit to Pakistan with trips to India and China. Amid heightened security and arrangements in the twin cities of Islamabad and Rawalpindi, Saudi Crown Mohammad bin Salman has arrived at Nur Khan Air Base in Rawalpindi. As he stepped down from the aircraft, the crown prince was warmly welcomed by Prime Minister Imran Khan. The premier’s cabinet members and Army Chief Gen Qamar Javed Bajwa were also present at the air base to receive the Saudi guest. A formation of JF-17 thunder jets and F-16 fighter jets escorted the plane of the Saudi royal after its entry into the Pakistani airspace


By Dawn
February 18, 2019

Economics

China, US to talk trade in Beijing next week

Trade talks designed to break deadlock and end tariffs which have slowed down both economies. US President Donald Trump has announced that US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will head to Beijing for trade talks on Feb 14-15, the White House said Friday morning. The principal-level meetings, following discussions that took place on Jan 30-31 in Washington, will be preceded by deputy-level negotiations that will begin on Feb 11, led by Deputy USTR Jeffrey Gerrish, according to a statement from the White House Press Secretary Office. Carlos Gutierrez, former US Secretary of Commerce, said that trade disputes are bad for both sides. “So I would hope that we have reached the limit in terms of escalation, and that we can continue the dialogue to reach an agreement,” he said in an interview on Wednesday. Last week, top Chinese and US trade


By China Daily
February 11, 2019