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Fledgling U.S. LNG Exports Face Threat of China Becoming Seller

  • China said to sell surplus cargoes as imports poised to drop
  • U.S. LNG projects seen operating at 50% capacity due to glut
Updated on

U.S. liquefied natural gas producers face an unlikely challenge as they prepare to enter global markets: China has more than it needs.

The Asian nation will accept only 77 percent of contracted cargoes in 2015 as the slowest economic growth since 1990 cuts demand, according to industry consultant IHS Inc. The rest of the supply will be put up for sale amid a worldwide glut that Goldman Sachs Group Inc. says is likely to force U.S. export projects to operate at half capacity.