BEIJING: China’s state-owned oil and gas major CNOOC sees potential for greater energy cooperation between China and the United States and could consider investment opportunities with US partners in the future, a senior company executive said.
CNOOC General Counsel Xu Yugao said there remained significant room for cooperation in the energy sector despite ongoing trade tensions between the two countries, particularly in liquefied natural gas (LNG).
“The US is currently the world’s largest producer and exporter of LNG, while China is currently the largest importer of LNG — so there is actually still a lot of room for cooperation in the future,” Xu said following the company’s half-year results.
He did not disclose details of any potential deals but said CNOOC would work with partners, including those in the United States, to pursue investment opportunities where it believes value could be created for shareholders.
China previously imported US oil and gas, but energy trade between the two countries has largely stalled since Beijing imposed tariffs on US energy products during last year’s trade dispute.
Although bilateral relations have improved, the tariffs remain in place, limiting direct energy trade between the two economies.
During US President Donald Trump’s visit to Beijing in May, US officials raised the possibility of expanding energy cooperation, including increased Chinese purchases of US LNG. However, no major new agreements have emerged so far.
CNOOC is among several Chinese energy companies that hold long-term supply agreements with US LNG producers. Since the tariffs were introduced, Chinese buyers have generally sought to resell contracted cargoes rather than absorb the additional tariff costs.
The CNOOC executive’s comments indicate that, despite current trade barriers, the scale and complementary nature of the US and Chinese energy markets could provide opportunities for future cooperation if bilateral economic relations continue to improve.
By Reuters
