China Economic Review
Charting China’s changing economic terrain · Since 1990

US Department of Energy advises against China investment in American LNG projects

May 15, 2015

The US Department of Energy (DOE) is advising American firms not to allow Chinese firms to invest in American liquefied natural gas projects, Reuters reported, citing Michael Smith, the chief executive of Freeport LNG. Smith said the advice contributed to a lack of lucrative US gas export deals with Chinese companies. “We were advised by the DOE to be careful who our customers were, because this is very political,” he said, calling the prospect of Chinese interest in a major US export project as “a political hot potato we couldn’t take the risk on.”