The Trump administration’s trade dispute with China has...

The Trump administration’s trade dispute with China has supposedly delayed our bid to sign long-term natural gas deals.

There's also a historic milestone to take into consideration, the first ever Russia to China 3000km NG pipeline called the Power Of Siberia, which as of late March is 75.5% complete.

Due to come online late 2019, early 2020s and will have a 28mt capacity.

The conclusion... there's an abundance of future natural gas demand opportunities to be soaked up by aspiring worldwide export projects. China does have big, future supply contracts already in place but their consumption will continue to grow at an exponential rate. According to an SIA energy report in 2016, the company stated that 66.1mt worth of LNG import terminals had been proposed between 2021 - 25! Europe is in desperate need of alternative options/supplies outside of Europe. We face strong competition with pipeline gas predominantly from Russia.

Hi Jk, great post as usual, but here's a thought, maybe you can help ?

What's stopping China from taking their 'Bucket & Spade' to Qatar or Down Under for supply in the short to medium term, not to mention Russia, if all they needed / wanted to do was fill a gap til Trump took a tumble off into the Twitter sphere, as China has approved the removal of the two-term limit on the presidency, effectively allowing Xi Jinping to remain in power for life. Why wouldn't Xi Jinping just wait it out, play the long game, not the short sighted one Donald seems to prefer atm, even just for a year or two knowing Trump probably won't be around that much longer anyway or until a new US President is in The House who might have some common sense, rather than picking a fight with your biggest trading partner ? Especially when,

Qatar Petroleum is moving forward with its plans to increase the country’s LNG output by 30 percent, from 77 million tons per year to 100 mtpa in order to meet the rising global demand.

Speaking at a conference in Washington, Qatar Petroleum president & CEO Saad Sherida Al-Kaabi, said that the contracts for the production expansion project would be awarded by the end of next year.

He added that the target of 100 million tons of LNG per year would be met by the end of 2023.

The value of Australia’s LNG exports increased by 47 percent year-on-year in the March quarter of 2018, driven largely by increases in volumes as projects under construction came on-line.

Australia’s LNG export earnings are forecast to increase by 37 percent from an estimated A$30.8 billion ($22.7 billion) in 2017–18 to $42.4 billion ($31.3 billion) in 2019–20, driven by both higher export volumes and higher prices, Australia’s Department of Industry, Innovation and Science said in a quarterly report.

Export volumes are expected to increase by 24 percent from 62 million tonnes in 2017–18 to 77 million tonnes in 2019–20, as the remaining LNG plants currently under construction come on-line.

www.lngworldnews.com/qatar-petroleum-to-award-lng-expansion-deals-by-end-2019/

www.lngworldnews.com/higher-volumes-price-to-bump-australias-lng-export-income/

Cheers

Frank