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While British Columbia was counting absentee ballots from this week’s election to find out who will form the next government — which could mean more political risk for proposed multi-billion-dollar liquefied natural gas projects — the United States was announcing a big deal with China that paves the way for an acceleration of its LNG industry.

The deal, announced late Thursday and kickstarted during the recent meetings in Florida between U.S. President Donald Trump and China’s President, Xi Jinping, has the potential to alter global LNG trade by connecting the U.S., the fastest growing supplier, with China, the largest growth market, according to Massimo Di-Odoardo, head of global gas and LNG research at natural resources consultancy Wood Mackenzie.

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“Until now Chinese buyers have not bought long-term LNG supply from the U.S. directly,” he said. “In the longer term, the deal paves the way for a second wave of investment in U.S. LNG. Developers will now be able to target Chinese buyers directly, potentially supporting project financing. It could also support direct Chinese investment into liquefaction and upstream developments on U.S. soil,” he said.



Meanwhile, the deal increases pressure on competing suppliers, including new LNG projects from Australia, East Africa and Canada, as well as new pipe and LNG projects from Russia, he said. The consultancy expects Chinese LNG demand to reach 75 mmtpa, triple 2016 imports, by 2030, which is equivalent to US$26 billion a year at today’s prices (US$7/mmBtu), “and the U.S. is keen for a slice of the pie,” Di-Odoardo said.