Exxon Mobil resolute in pursuing LNG trade with China

The company’s strategy follows two tracks:

1. Expansion of LNG output in locations such as Papua New Guinea and Mozambique.
2. Creation of demand for supply from these locations in China by establishing the company’s first import and storage hub.

A fundamental strength of this strategy is the fact it allows Exxon to sidestep the trade war entirely, as the company’s large scale projects in Papua New Guinea and Mozambique will not incur the 10% import tariff placed on US gas.

Surging Chinese demand for LNG, currently increasing by over 10% annually, will also help make this bold venture profitable for Exxon Mobil; somewhat negating the impact of the extra costs.