When you put tariffs on top of the LNG premium, domestic production can be more economical, even if the same cost would not be economical in the US.
Maybe. But China will have to prove it can actually succeed technically where the likes of BP and others tried and failed.
Here's an excerpt from a prior posting on this:
"We understand that both poor well performance and challenging above-ground conditions contributed to BP's decision," Wood Mackenzie's Zhang said, adding that challenges include complex and deep reservoir geology, low well productivity, marginal economics and infrastructure constraints.In addition, there is a scarcity of water in the region to frac wells. This paper highlights
https://sites.nicholas.duke.edu/avnervengosh/files/2011/08/EST_Sichuan-Basin.pdfExcerpt:
Overall, while China’s demand for energy is growing, water availability and quality will constrain China’s ability to enhance its energy security through shale gas production...In summary, this might not be an economic issue as much as a technical issue.
In any case, many billions of funds will need to be diverted from other Chinese projects toward the energy sector to achieve its goals. This in itself weakens China's growth/
As a fundamental issue, all we need to do is look north to Russia to see how a government on its own so inefficiently wastes money for developing hydrocarbons compared to the private sector.