Stocks of U.S. LNG exporters have risen sharply after Donald Trump’s election victory, with many in the industry anticipating a boost from a potential new trade deal between the U.S. and the European Union.
Trump has long criticized the U.S. trade deficit with the EU and has proposed imposing tariffs on European imports to address the imbalance. In response, Ursula von der Leyen, President of the European Commission, suggested that the EU could increase its purchases of U.S. LNG.
Venture Global CEO Michael Sabel told Financial Times, “We look forward to working with the incoming Trump administration to solidify America’s role as the world’s leading supplier of clean liquefied natural gas.” Sabel added that Europe has made significant investments in infrastructure to support a rise in LNG imports, and with the right policies, the U.S. is well-positioned to meet this growing demand.
Other industry leaders also expressed optimism about the potential trade talks between Washington and Brussels. “The good thing about America’s natural gas reserves is that we can supply,” said Harold Hamm, Chairman of Continental Resources. Mike Sommers, president of the American Petroleum Institute, predicted that the Trump administration would quickly lift a pause on LNG permits, saying, “I would expect that to happen within the first few days of the new administration.”
A few days after the U.S. elections, von der Leyen revealed in a media interview that she had discussed increasing U.S. LNG imports during a phone call with Trump. “We still get a lot of LNG from Russia, but why not replace it with American LNG, which is cheaper and helps lower our energy costs?” she said, as quoted by Bloomberg.
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