The newly inked "phase one" U.S.-China trade deal calls for China to boost purchases of U.S. energy products — including crude oil and liquified natural gas (LNG) — by $52.4 billion over the next two years.
Why it matters: China is the world's largest oil importer and second-largest LNG consumer.
But, but, but:S&P Global Platts notes that it "could spur more commercial activity for American liquefaction projects, but much will depend on the fate of existing LNG tariffs."
They note that no U.S. LNG cargoes have gone to China since March.
The big picture: "Most of the purchases China committed to making are in 2021, so any recurrence of tensions could undercut the deal," the New York Times reports.
"More important, executives noted, China made no explicit pledge to eliminate tariffs on energy imports — 5 percent on crude oil and 25 percent on liquefied natural gas — which they viewed as a response to the administration’s refusal to remove tariffs on Chinese goods."
