Once a top customer of US fossil fuel, China government this month orders all of its companies to cancel all liquified natural gas (LNG) contracts with US. This undermines an entire decades of US investment in natural gas.

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1. Back in 2021, China accounts for over 10% of US natural gas exports. Like other fossil fuel industry, natural gas requires decades of investment before coming to fruition. In Donald Trump first term, the administration very much wanted to make the US the largest fossil fuel producer in the world. Trump explicitly encourages natural gas production and expansion. In response, the industry starts looking for customers overseas. Two customers stand out – Europe and China. China in particular becomes one of the top destinations for natural gas, owing to its desire to transition away from coal.

   Now, with Europe being committed to net zero and China retaliating against the US trade war, both legs of the US LNG industry global expansion are now kicked out under them. Without large, stable customers, large expansion of fossil fuel production is not realistic, however much Trump wants it to be.

2. Moscow’s Asset Gutting America

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