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2018-08-10 10:50:00

U.S. - CHINA LNG DOWN

U.S. - CHINA LNG DOWN

REUTERS- U.S. exports of liquefied natural gas (LNG) to China in July fell to their lowest level in a year and are expected to decline further as the Sino-U.S. trade dispute forces utilities to seek alternative supplies.

In an escalating trade dispute, China last week said it may slap a 25 percent import tariff on U.S. LNG supplies in retaliation to a raft of duties on Chinese goods that U.S. President Donald Trump has announced since June.

"The import tax will make U.S. exports of LNG uncompetitive," energy research group Bernstein said in a note this week.

Traders said Chinese buyers were already seeking alternatives.

"The Chinese are already indicating that they would prefer not to take U.S. cargoes for any new spot deals," said a Singapore-based energy trader who deals with Chinese LNG importers.

He declined to be identified because he was not authorized to speak publicly about commercial operations.

The main beneficiaries of this shift are producers in the Asia/Pacific region, who have been quick to snatch market share from the United States since the trade disputes broke out in June.

"Short-term, alternative volumes could come from many other projects including the more proximate Australian, Papua New Guinean (PNG) and Qatari projects which have some flexible volumes," said Saul Kavonic, Director of Asia/Pacific Markets and head of energy research for Australia at Credit Suisse.

Shipping data shows that U.S. LNG sales to China have already slumped from almost 400,000 tonnes in May to just 130,000 tonnes in July, while supplies from Australia, Malaysia, Indonesia, Russia and Papua New Guinea have increased.

U.S. LNG exports only started in 2015, and sales to China were a booming business opportunity for the American natural gas industry. They were also a convenient tool to reduce the American trade deficit with China. 

Analysts said U.S. LNG sellers such as Cheniere would still be able to find a home for its supplies, including in Europe.

Still, they warned that the spat with China could stall planned future U.S. export projects that were hoping to sell into China.

"While Chinese tariffs will not halt the United States's rise to be among the world's top-3 largest LNG exporters, they could slow or stop the progress of some projects... reducing the overall weighting of U.S. LNG in the global LNG mix over the next decade," said Credit Suisse's Kavonic.

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Earlier: 

 

 CHINA - U.S. RETALIATION
2018, August, 6, 13:30:00

CHINA - U.S. RETALIATION

API - “China’s retaliation will hit America’s energy industry particularly hard,” said API Vice President for Regulatory and Economic Policy Kyle Isakower. “American natural gas and oil companies already hit by U.S. tariffs on industrial products and specialty steel essential to our industry will now be faced with Chinese tariffs on critical U.S. exports, impacting American jobs that rely directly and indirectly on the energy industry.

 CHINA - U.S. LIST
2018, August, 6, 13:25:00

CHINA - U.S. LIST

PLATTS - China rattled investors in the US LNG export sector when it said Friday it may impose 25% tariffs on American cargoes if President Donald Trump follows through on his threat to escalate the trade dispute with Beijing that he initiated.

 U.S. OIL TO CHINA DOWN
2018, July, 27, 12:45:00

U.S. OIL TO CHINA DOWN

PLATTS - China's crude oil imports from the US for July have fallen sharply from June, and are expected to drop even further for August, vessel tracking data showed, as Beijing's tariffs on US crude imports get closer to implementation.

 CHINA'S GDP UP TO 6.9%
2018, July, 27, 12:40:00

CHINA'S GDP UP TO 6.9%

IMF - The Chinese economy continues to perform strongly. GDP growth accelerated to 6.9 percent in 2017, driven by a cyclical rebound in global trade. Growth is projected to weaken slightly to 6.6 percent in 2018 owing to the lagged effect of financial regulatory tightening and the softening of external demand. Headline inflation has remained contained at around 2 percent and is expected to rise gradually to 2½ percent.

 U.S. - CHINA LNG DOWN
2018, July, 25, 09:30:00

U.S. - CHINA LNG DOWN

REUTERS - China, which purchased 14 percent of all U.S. LNG shipped between February 2016-April 2018, has taken delivery from just one vessel that left the United States in May and none in June compared with 14 during the first four months of the year.

 U.S. - CHINA ENERGY TRADE
2018, May, 23, 10:35:00

U.S. - CHINA ENERGY TRADE

PLATTS - China became the largest contributor to global LNG consumption growth in 2017. It surpassed South Korea as the world's second largest LNG importer and its share of global LNG demand is expected to converge with that of Japan by 2030.

 GLOBAL LNG IMPORTS UP 10%
2018, April, 23, 14:30:00

GLOBAL LNG IMPORTS UP 10%

PLATTS - Global LNG imports in 2017 increased by nearly 10%, the highest annual growth rate since 2010, reaching 289.8 million mt, while expectations of an LNG surplus failed to materialize as rising imports into China contributed to balancing the market.

 

 

Tags: USA, CHINA, LNG