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Big Oil Earnings To Explode In 2017

Big Oil Earnings To Explode In 2017

The energy sector has been…

China To Receive Second Shipment Of American Natural Gas

LNG vessel

A port city in China is set to receive the second shipment of shale gas from the United States, according to a new report by Bloomberg.

Shipping data collected by Bloomberg shows that Ningbo, located on China’s eastern coast, will receive the cargo just months after Shenzhen received American liquefied natural gas (LNG) in a tanker that began its journey in a brand new shipping terminal in Louisiana.

China has upped its LNG imports by 20 percent during the first three-quarters of 2016, compared to the same period last year, Timera Energy said. The jump has been caused by low gas prices, which has led the government to seek out new contracts for the procurement of the carbon emission-conservative fossil fuel.

During the United Nations-led Climate Change talks in Marrakesh earlier this month, China confirmed its commitment to abandoning coal – a potent polluter - and increasing its utilization of natural gas to power its developing economy.

Current infrastructural projects demonstrate the country’s natural gas embrace. Of the 20 new LNG import terminals to be constructed around the world over the next three years, 10 will be located in China, according to a report from the International Gas Union.

On the American side, booming shale gas production has the North American country on track to export a record number of natural gas shipments in November. Nine shipments of LNG will depart from the Sabine Pass terminal by the end of this month.

President-elect Donald Trump promised during his campaign to revive the coal industry in the US, but receding demand from China – the world’s largest coal consumer - means the commodity’s decline is swiftly approaching.

Lifting moratoriums on drilling in federal lands – which Trump has promised to do – will benefit the natural gas industry as American businesses and utility companies have already begun to shift to the greener fossil fuel.

By Zainab Calcuttawala for Oilprice.com

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  • Jerry on November 28 2016 said:
    Qatar refrains from expanding LNG exports because they entertain the hope of holding up prices. Sooner or later Qatar must export more LNG putting pressure on prices.
  • Bill Simpson on November 25 2016 said:
    You would think the Chinese would buy from the Chevron projects off Western Australia. That is a lot closer than Louisiana, all the way across the Pacific Ocean after paying the Panama Canal toll. Russia has a lot of gas too, which could be piped down to China from Siberia. They might waste a lot less of the gas used in the wasteful liquefaction process, if they pumped it on down.
    Watch the massive amount of gas the Russians find under their Arctic continental shelf after the ice melts up there from global warming. I predict that it will dwarf what is in the Middle East.

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