What Chinese tariffs mark in the American LNG

Disconnecting its largest buyer and seller in the world could lead to China’s decision to impose countervailing duties on this fuel it imports from . Beijing announced 15% charges on American gas just minutes after President Donald Trump imposed duties on products from China. China introduced about 6% of its LNG from the US last year. This move will likely push Chinese buyers holding long-term contracts with American projects to resell their shipments to importers elsewhere. CORVERSE The country’s LNG importers have already unloaded much of their American quantities on other markets, such as Europe, where prices are more attractive. Already, Chinese buyers LNG are asking their counterparts in Asia and Europe about the exchange of additional American loads with cargo from elsewhere, according to traders who asked not to be named because they are not authorized to speak to the media. The interruption of trade flows “can push prices higher everywhere on the margins,” said Saul Kavonic, MST Marquee’s energy analyst. “Customs will create substantial market inefficiency, which will benefit some liquefied gas traders in the regions”. Chinese companies are unlikely to sign new long-term contracts with proposed projects in the USA as long as commercial tensions remain high. This is bad news for those American exporters who need to lock up buyers before securing the necessary funding to start construction. Trump, busy with the abrupt US trade deficits with various countries, has made clear his intention to use the country’s energy superpower regime to balance the equation. His threats have prompted some buyers, such as India and Japan, to hold talks to supply more American gas, while repelling Chinese companies. Beijing has also targeted American LNG in the past, adding duties to American imports in 2018 during Trump’s first presidency.