The U.S. has a history of picking fights. When another country complains about us, I can almost hear everyone else rolling their eyes and saying, “What did they do this time?”
Well, the U.S. and China have been going at it for some time, and the headlines are just as ubiquitous as ever.
These days, however, what we’re hearing about is an anticipated trade deal to cool the fiery tensions between these two global superpowers.
This trade deal would roll back the tariffs that the U.S. implemented on Chinese goods – all $200 billion worth.
In return, the Chinese would retract their own retaliatory tariffs.
This has the potential to cool the waters a bit, and allow the two to regain stability.
While this in itself is a good enough result, there’s another favorable end goal that will be mutually beneficial.
A Win-Win Situation
China is the second-largest importer of LNG, beaten only by Japan. Not exactly surprising, considering it’s the country with the world’s biggest population (1.3 billion people).
If this trade deal does indeed come to fruition, we could be seeing some results that benefit both countries.
Because China is in the market for $18 billion worth of LNG imports.
And the U.S. currently has the top producer of LNG, which is the frontrunner for the purchase.
As the CEO of Delfin Midstream – which could be one of the first companies ready to ship out LNG to China – commented, “…In our case we can actually create a win-win for both countries by exporting a large amount of U.S. LNG.”
And even without a trade deal signed and ready to execute, an LNG project is already in the works to begin.
Whoever Controls This Technology, Rules the World
A New Method for LNG
The current method of shipping LNG overseas involves producing the natural gas on U.S. soil, and then shipping it via cargo ship.
However, for several years now, the U.S. has been working on developing what’s called FLNGs – floating liquefied natural gas.
These are enormous ships floating above an offshore natural gas field, capable of drilling, producing, liquefying, and shipping out the finished product to China all in one place.
And the U.S. is reserving its first FLNG for the culmination of this U.S.-China trade deal.
I’d call this a very interesting development in the ongoing geopolitical situation between the U.S. and China, not to mention the LNG industry, which is one of the fastest-growing sectors in energy.
Nor is this the only thing going for the LNG industry recently either…
This Company Has Remarkable Profit Potential
The LNG market is expected to reach $20.6 billion by 2025, meaning that many of the companies involved in the production and shipment of this vital fuel are well-placed to profit.
Including one that’s heading further into the spotlight recently.
Trading at just under $10 a share, this company is quite small – but I certainly don’t expect it to stay that way.
Not only is the potential for a trade deal between the U.S. and China bolstering the potential for this company, but they just received a brand new backer for one of their major projects.
The project is currently in development, but I expect it to catapult this company into the stratosphere.
In other words, we’re at the ground floor here on a major profit opportunity.
I have more information about the company and its industry, so click here to learn all about it.
The post Weekender Story: A Potential Trade Deal Could Shoot This Industry through the Roof appeared first on Oil & Energy Investor.
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