CNOOC To Benefit From Possible US-China Final Trade Accord
Zacks Investment Research | Apr 04, 2019 08:26AM ET
CNOOC Limited (NYSE:CEO) announced that liquefied natural gas (LNG) will be contributing significantly to trade between the United States and China, once tensions between the two economies are settled.
After negotiating for months, both nations have successfully managed to fix maximum hurdles on their way to sign the final trade accord. Once signed, Beijing is likely to import significant LNG volumes from Washington. This is because China has been investing considerably in its LNG import facilities, owing to mounting demand for clean energy.
The trade agreement is likely to benefit CNOOC, as the company has invested the most in LNG terminals in China. The possible consummation of the final trade accord may also lead to a 20-year LNG supply deal between China Petroleum & Chemical Corporation (NYSE:SNP) and Cheniere Energy Inc (NYSE:LNG) , per media reports.
Investors should take note that currently China is the second largest LNG importer globally. Moreover, LNG constituted 60% of total natural gas volumes imported by China in 2018, according to CNOOC. In fact, to significantly streamline energy mix, Beijing is Original post
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