China Hits 26% of 2020 Target for U.S. Energy Imports under Trade Deal
BEIJING (Reuters) - China has accelerated imports of crude oil, propane and LNG from the United States since July, but total energy product purchases through October remain far short of targets for 2020 set out in the Phase 1 trade deal with Washington.
Over the first 10 months of 2020, China's purchases of U.S. crude oil, LNG, propane, butane and other energy products totaled $6.61 billion, about 26% of the $25.3 billion target, according to Reuters calculations based on Chinese customs data.
While the gap to the target is unlikely to be bridged by year-end, U.S. and Chinese trade officials reaffirmed their commitment to the deal in August, and China's imports of U.S. energy products have increased sharply the second half of the year.
The $6.61 billion accrued through October marks a five-fold jump from the $1.29 billion amassed by end-June.
Imports of propane, a key component of liquefied petroleum gas (LPG) used as fuel for cars, heating and to produce petrochemicals, grew at the fastest pace of all major energy products since July.
Robust demand for chemicals from China's revitalized manufacturing sector, along with new processing units at independent refiners Zhejiang Petroleum & Chemical and Zhejiang Huahong have fueled the import drive.
LNG demand is also expected to be firm through winter as Beijing continues to replace coal with gas and as the country liberalizes its pipeline network.
Refinitiv trade flows data show China may receive a record 1.26 million cubic meters of U.S. LNG in November.
China's crude oil imports from the U.S. hit a record 12.5 million tonnes through October, worth $3.88 billion, but the pace of U.S. purchases is expected to slow through the remainder of 2020 as top suppliers Saudi Arabia and Russia target increased flows to the top oil importer.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Comments