02:09
Low-level trade talks might be back-on between the U.S. and China, with Beijing set to send a delegation to Washington this month. But hanging over any discussions will be the potential for the trade spat to worsen even further. Jacob Greaves in Dubai has been looking at one possible scenario - China going ahead with retaliatory tariffs on U.S. gas exports.
The U.S. and China's worsening trade spat could be about to dock in the Gulf. Beijing has proposed to slap tariffs on U.S. exports of Liquefied Natural Gas, potentially making U.S. LNG producers the latest casualty in US President Donald Trumps America first policy. But there could also be winners.
JACOB GREAVES DUBAI "Here in the United Arab Emirates and across the Middle East there could be opportunity. The region accounts for around 17% of global LNG production- And there's one power that dwarfs all others- Qatar."
Energy experts point to the country already increasing output.
ROBIN MILLS, CEO QAMAR ENERGY "Qatar stands to be the biggest winner they are expanding their LNG capacity from 78 million tonnes per year now to 100 million tonnes and this will make them again the largest exporter in the world, the US and Australia were in a position to catch them, but Qatar will go ahead again, so they're the big winners, Oman and the UEA energy's not nearly as important to them but they will also gain to some extent."
It all comes at a time that the US has been championing its growing prowess as an energy exporter. But a loss of appetite from China- a major consumer- could put that to bed.
ABACHE ABREU, SENIOR LNG EDITOR S&P GLOBAL PLATTS "If China's proposed 25% tariffs on US LNG were to be implemented, we could potentially be faced with one of the biggest readjustments of global LNG trade flows since Fukishima in 2011."
That all depends on whether Beijing actually brings energy into the escalating trade row. But if they do it stands to pump more trade the way of Gulf exporters. Jacob Greaves, CGTN, Dubai.