China Can Meet Phase One Trade Commitments with US LNG

New long-term LNG contracts creates thousands of US jobs within months

WASHINGTON – To help stabilize and grow US oil and gas sector employment quickly, the American Exploration and Production Council and LNG Allies (The US LNG Association) sent President Trump a letter encouraging the Administration to seek a mutual understanding with the Chinese government on commitments to long-term purchases from new US LNG facilities, to fulfill China’s energy obligations in the Phase I trade agreement.

“LNG Allies has been working with the Administration to encourage the Chinese to sign-up for long-term US LNG contracts, as these contracts – worth billions of dollars in coming years – are a prerequisite for LNG project financing and can create hundreds, if not thousands, of US jobs in a matter of months,” said President & CEO of LNG Allies Fred H. Hutchison.

“Upstream domestic oil and gas producers are the reason the US now leads the world in natural gas production. It is critical for China to be held to their Phase I energy trade commitments for both crude and natural gas, and the huge and growing Chinese market holds great potential for US producers both now and well in the future,” said AXPC CEO Anne Bradbury.

The AXPC-USLNG Allies letter to President Trump about the need to protect and grow overseas markets for US LNG exports said that the groups “understand [the President’s] frustration and believe that there is a solution – at least as it pertains to energy – that could represent a win-win result for both sides.” The letter goes on to read:

“In addition to stepping up short-term gas and oil purchases, we encourage you to allow China to meet a portion of Phase I commitments by entering into new long-term sales and purchase agreements (SPAs) with U.S. LNG export companies that are building new or expanding existing LNG export facilities.”

To lay out the logic of AXPC and LNG Allies request, the letter also included a policy brief, “Trade War, Energy & Coronavirus: How to Make the US-China Deal a Success,” prepared by researchers Mr. Steven R. Miles and Dr. Kenneth B. Medlock, III, of the Center for Energy Studies at Rice University’s Baker Institute for Public Policy.

About the American Exploration and Production Council:
The American Exploration and Production Council (AXPC) is a national trade association representing 25 of the largest independent oil and natural gas exploration and production companies in the United States. We lead the world in the cleanest and safest onshore production of oil and gas, while supporting millions of Americans in high-paying jobs and investing a wealth of resources in our communities. Learn more at

About LNG Allies:
LNG Allies, The USLNG Association, is the only independent nonprofit organization focused solely on advancing the interests of the US LNG industry. LNG Allies promotes effective public policy and communicates the domestic and global benefits of robust US LNG exports. Learn more at


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