PetroChina to dump US spot LNG in fear of tariffs

PetroChina to dump US spot LNG in fear of tariffs
Illustration purposes only (Image courtesy of Cheniere)

State-owned PetroChina could pull the plug on winter spot LNG cargo purchases from the United States amidst the Chinese government’s proposed tariffs. 

Bloomberg cites sources close to the matter as saying that the Chinese company would turn to purchasing spot cargoes from other regions or swap its US LNG volumes with other East Asian countries as it looks to avoid paying the proposed 25 percent tariff.

Earlier this month, the Chinese Ministry of Finance proposed a new set of tariffs on imported goods from the United States, including LNG which could face a 25 percent tariff.

It was reported last week that PetroChina has already advanced talks with Qatar over short- and long-term deals for the supply of liquefied natural gas.

In February this year, PetroChina signed two sale and purchase deals with the Houston-based Cheniere that are set to start this year and go on through 2043.

Commenting on the potential effects of the ongoing trade dispute between the United States and China, Cheniere’s CEO and president Jack Fusco, noted that these deals should not be impacted, however, he hoped the dispute will be settled soon.

 

LNG World News Staff

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