The U.S. and China have made a major trade deal, with America set to receive $26 billion dollars annually by exporting liquid natural gas (LNG) to the Asian powerhouse.
The Department of Commerce has developed a plan to give Chinese companies access to long-term contracts from American energy suppliers.
“I am not shocked that China, an emerging U.S. rival in Asia and indeed throughout the world, would turn to Washington for more and more LNG, and more broadly, more natural resources,” said Harry J. Kazianis, director of defense studies at the Center for the National Interest. “Chinese officials have told me time and time again that they need to diversify where they get their energy from. They fear being overly dependent on any one source, or even any one continent, for their natural resource needs.”
As reported in the Daily Caller:
China’s dramatic economic growth over the last decade has fueled its lust for oil and LNG. Rising demand has long surpassed Chinese energy production capabilities. As China’s need for oil and LNG imports rises, its dependence on the U.S. hydraulic fracturing, or fracking, boom has increased.
China is now the largest foreign buyer of U.S. oil, according to new data from the U.S. Energy Information Administration. U.S. crude oil exports in February jumped 35 percent as China started buying American oil. The country surpassed the U.S. as the world’s largest net importer of petroleum in 2013.
A study by the Department of Energy stated that exporting LNG would, “address a variety of environmental concerns in the power‐generation sector,” as well as significant economic benefits.