First U.S. LNG cargo since tariff dispute reaches China, may be re-exported
XLE•Tariffs still limit U.S. LNG flows
China, the world's largest LNG importer, has several bonded storage sites for LNG across the country, including at Tianjin and Zhoushan.
It had previously been a major buyer of U.S. LNG, with Chinese companies still holding long-term contracts to purchase U.S. supplies. But Chinese importers have been diverting these U.S.-sourced cargoes to buyers elsewhere, as the tariffs have raised import costs.
China suspended a 24% additional tariff on U.S. goods for one year, but retained a base tariff of 10% imposed in November. Tariffs on U.S. energy products, including a 15% levy on LNG, also remain in place.
The U.S. is the world's largest exporter of LNG, shipping out 109 million tons of the fuel last year, according to Kpler data.
U.S. LNG cargo arrives at Chinese terminal
A cargo of U.S. liquefied natural gas has arrived at a Chinese terminal for the first time since trade tensions between Washington and Beijing effectively halted direct shipments, vessel-tracking data showed, though it may never enter China as the terminal's bonded storage facilities allow re-exports without import duties.
