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The lack of investment projects in the US gas sector may cause severe economic shocks, according to the International Energy Agency (IEA).

“Without additional investment in liquefied natural gas projects, the US gas industry will have to limit output, which will mean a loss of capital and this will lead to economic shocks”, said Laszlo Varro, senior economist at the IEA.

The production of US natural gas is at record levels thanks to the shale revolution, marked by a significant improvement in the extraction technique known as fracking.

The IEA pointed out the major barriers to export capacity – global trade tensions and lack of serious investment in the development of different projects. According to the agency, if there is no development of the export infrastructure, much of the US gas will simply remain in the ground. The internal market does not have the capacity to absorb the quantities of extracted gas and this will lead to a serious drop in its price.

The estimates from energy industry experts indicate that international trade will continue to work without any interruptions, and the US gas will cover much of the Chinese market’s demand.

The new customs duties on Chinese imported goods for 200 billion USD may, however, prove to be bad news for trade prospects and make it more difficult to invest in the export infrastructure in question.

However, the IEA is optimistic about world trade, predicting that will soon be heading for a balanced position.

According to the agency, in order to stimulate LNG trade, Washington will have to support the industry through a change in the country’s international policy.