Exxon moves ahead on China projects as trade tensions simmer

Bloomberg

Exxon Mobil Corp., the US energy behemoth, signed deals to move ahead on a proposed multibillion-dollar petrochemical project and a gas import terminal in southern China, contrasting with trade tensions between the two nations that may escalate this week.
The Irving, Texas-based company signed cooperation framework agreements with the Guangdong provincial government, it said in a statement, following a preliminary deal in November.
The chemical complex, which is expected to start in 2023, remains subject to a final investment decision, it said, without providing cost details.
The investment comes as US President Donald Trump may press ahead with tariffs on another $200 billion of Chinese goods after a public-comment period concludes on Thursday, which China has vowed to meet with retaliatory levies, including on American LNG exports.
“China’s strong economic growth and thirst for natural gas imports seem to set a positive tone for the project from the get-go,” Laban Yu, a Hong Kong-based analyst at Jefferies Group LLC, said. “Through the Exxon deal, China wants to send a message to US companies that the country is still open for business, regardless of what President Trump may do with
trade tariffs.”
The agreement also includes the provincial government’s support of the Huizhou LNG receiving terminal, including supplying LNG.