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Trade Deal Could Propel U.S. to Top of China's LNG Supplier List

  • Morgan Stanley sees the two countries reaching a pact in 2019
  • LNG may cut U.S.-China trade deficit by $17 billion: bank
Updated on

Here’s another reason for Presidents Donald Trump and Xi Jinping to seal a swift trade deal: it could put the U.S. on track to become China’s biggest supplier of liquefied natural gas, according to Morgan Stanley.

A pact this year between the world’s two largest economies -- the bank’s base case -- will likely lead to large Chinese purchases of American LNG, which would help shrink the U.S. trade deficit, it said in a report. This may help boost the U.S. share of China’s gas imports by 2025 to 21%, compared with 5% without a deal, Morgan Stanley said. It was only 2% last year.