A company behind a multibillion-dollar project to export liquefied natural gas from Louisiana is delaying its investment decision due to problems lining up Chinese buyers amid the ongoing U.S.-China trade dispute.
The announcement shows the trade tensions are beginning to have a negative impact on an industry that President Donald Trump has championed. Trump has pitched U.S. LNG — natural gas chilled to liquid form — to trade partners from China to Poland.
Australia's LNG Limited on Monday said it will not make a final investment decision this year on its Magnolia LNG terminal near Lake Charles, Louisiana. The company previously told investors it expected to announce a decision by year-end.
"We made that statement prior to the trade tensions that have manifested over the past months, which have caused headwinds for LNG transactions," LNG Limited CEO Greg Vesey said in a letter to shareholders. "We remain hopeful in our ability to bring a final investment decision for Magnolia LNG to the Board of Directors in the first part of 2019."