Business China to buy US $ 52 billion of Additional...

China to buy US $ 52 billion of Additional Energy Products

-

(Bloomberg) – Terms of Trade is a daily newsletter that focuses on a world in trade wars. Sign up here.

China agreed to buy $ 52.4 billion of additional energy products as part of a significant trade deal that signed up to the world's top two major economic powers.

Purchases over two years will include liquefied natural gas, crude oil, filtered products and coal, the US government on Wednesday in Washington. It has not provided additional data on the energy purchases, which includes about a quarter of the total $ 200 billion of additional imports that China is committed to.

It is a promising sign for the LNG industrial industry, facing a global market with over supply. China, the world's fastest fuel heat and power plant buyer, did not import any American freight since February 2019.

While shale gas shipments from the American export terminals completed over the past three years have become one of the best suppliers in the world, some newer projects are stopping without Chinese buyers. The struggle to sign long-term sales contracts has undermined the efforts to secure funding for the multi-billion dollar facilities.

The shares of Cheniere Energy Inc., the largest LNG exporter, rose as much as 2.6% in New York trade as the wider equity market gained, although up to 2.7% was up to 2.7%. %. Permitted losses by crude oil and natural gas.

“The stage one agreement between the US and China is a step in the right direction and it is hoped to start LNG trade in the US,” Jack Fusco, Cheniere's chief executive and one of the business leaders who will be attending the event. ceremony signed by the White House, said in a statement.

Oil exports to China have declined due to the trading war. China went raw buying from the United States for six months in November, according to data from the US Census Bureau.

Despite losing the best customer, US oil exports remained steady as shipments to other places including US fringe, Europe and South Korea. Last year, US exports even reached 4.5 million barrels records per day.

While China has alleviated the consumption of American crude oil, the Asian nation has not shifted its dependence on foreign oil. Last year, China imported 10.16 million barrels per day, according to the customs figures issued on Tuesday, on top of the 10.12 million purchased at their imports in 2005.

Coal is likely to be a small part of trade with China, the world's largest producer of commodity. Last year, the United States launched approximately $ 128 million of coal to China through November, according to US Census Bureau data.

(Update to market response in fifth paragraph, coal in 10th)

– With the help of Stephen Voss and Will Wade.

To contact the reporters about this story: Christine Buurma in New York at [email protected]; Naureen S. Malik in New York at [email protected]; Catherine Ngai in New York at [email protected]

To contact the editor responsible for this story: Simon Casey at [email protected]

"For further articles like this, visit us at bloomberg.com"Details-reactid =" 42 "> For more articles like this, please visit us at bloomberg.com

"canvas-us can-text Mb (0) – mt (0) – sm Mt (0.8em) – sm" type "text" content "Subscribe now to stay on with the most reliable business news source. "data-reactid =" 43 "> Subscribe now to stay on with the most reliable business news source.

© 2020 Bloomberg L.P.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Asian stocks recover when investors welcome China’s virus response

SINGAPORE (Reuters) - Asian stock markets regained ground on Wednesday when China's response to a virus outbreak eased some...

Kawhi Leonard scores 36 while Clippers survive wildly to beat Mavericks

Seeing the start of Tuesday's game at the American Airlines Center, it was easy to forget that it featured...

SC Hearing on CAA LIVE: Do not remain in the Citizenship and NPR Act while the court gives the Center 4 weeks to respond;...

The main lawyer Kapil Sibal urged the bank to suspend the operation of CAA and postpone the exercise of...

Must read

Asian stocks recover when investors welcome China’s virus response

SINGAPORE (Reuters) - Asian stock markets regained ground on...

Kawhi Leonard scores 36 while Clippers survive wildly to beat Mavericks

Seeing the start of Tuesday's game at the American...

You might also likeRELATED
Recommended to you