LNG will be an integral part of China and the United States. trade once tensions are resolved: CNOOC

SHANGHAI (Reuters) – Liquefied natural gas (LNG) will become an important part of China and the United States. Trade once tensions are properly resolved between the two countries, said Wednesday a top executive of China National Offshore Oil Corp. (CNOOC).

LNG will also continue to dominate China's natural gas imports, already accounting for 60 percent of its gas imports last year, CNOOC Vice President Li Hui said on the sidelines of the LNG2019 conference in Shanghai.

CNOOC is the largest Chinese investor in LNG facilities and the largest buyer of this very cold fuel.

Since 2017, China has become the second-largest buyer of LNG in the world after Japan, as gas demand grew under the government's push to shift coal users to cleaner combustion gas.

China and the United States, the world's two largest economies, are getting closer to a final trade deal after months of tough negotiations.

If trade is resolved, China could increase purchases of US LNG, crude oil and soybeans to reduce Washington's trade deficit with Beijing.

"For China and the United States. LNG trading, you need to look at major trends and trade frictions. If this problem can be solved appropriately, LNG trading could be very important, "said Li.

Sinopec Corp., China's number two oil and gas company, is ready to sign a 20-year LNG supply deal with Cheniere Energy when the two countries end their trade dispute, Reuters reported.

The United States, the fastest-growing exporter of gas in the world through increased production of shale fields, continues to face competition from rival exporters such as Qatar and Australia.

Peter Coleman, Managing Director of Australia's Woodside Petroleum, told reporters in Shanghai that the end of a well-stocked global LNG market was "all about price".

"China has learned from current problems with the United States that diversity of supply is very important," he said.