US gas industry risks losing access to massive Chinese market as trade war escalates

September 18, 2018

On the production side, U.S. shale gas is performing strongly — but a trade war with China and a lack of investment projects in the sector could be "economically disruptive", according to the International Energy Agency (IEA).

"Without additional investments into American liquified natural gas (LNG) projects, the American gas industry will have to keep gas on the ground, which would be a waste of capital, economically quite disruptive," Laszlo Varro, chief economist at the IEA, told CNBC's Steve Sedgwick at the GasTech conference in Barcelona on Tuesday.

U.S. natural gas is being produced at record levels thanks to the shale revolution, brought about by the extraction technique known as fracking. And the booming demand for LNG in Asian markets, China in particular, should mean massive business for U.S. gas exporters.

But major bottlenecks in export capacity lie ahead due to global trade tensions and a lack of sufficient investment into projects for export infrastructure...

Read entire article at CNBC.com. 

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