Industry groups from China, Houston ink energy pact

China's leading industrial organization and the largest chamber of commerce in the US city of Houston, Texas, signed a memorandum of understanding to forge a strategic cooperative relationship in the energy sector on Thursday.

About 30 high-level government and business leaders, led by the China Petroleum and Chemical Industry Federation, were welcomed by the Greater Houston Partnership.

"I think this is a good start for the relationship. This is the first MOU we ever signed with a city," said Pang Guanglian, a member of the federation's executive board.

The federation has more than 1,700 member companies, including about 70 percent of the operations of China's petroleum and chemical industries.

"China imports a lot of energy products, including crude oil, gas, ethane and such. I believe China and US will soon reach a trade agreement. When that happens, China will definitely import a lot of crude oil, gas, ethane and other refined petrochemical products. The United States will find a big market in China for their energy products," Pang said.

Pang said executives from more than 20 member companies were part of the delegation.

"A lot of Chinese companies are willing to come to the US to invest. Some already have decided to make a long-term investment in the US."

Bob Harvey, CEO and president at the Houston partnership, said that despite trade frictions, Houston's trade with China grew to about $20 billion in 2018.

"GHP is proud to work with CPCIF and secure the future for the dynamic region by forging an alliance with an important China trade center," Harvey said.

China, the No 1 crude oil importer in the past two years, also became the top liquefied natural gas importer in 2018, according to federation Vice-Chairman Fu Xiangsheng.

"The US has become the largest energy producer in the world. We hope to have wider cooperation with the GHP by signing the strategic cooperation MOU," Fu said.