China's implementation of a 10% tariff on US liquified natural gas (LNG) imports could hamper growth for American producers looking to secure long-term buyers, according to industry observers. While Ronald Ripple, professor of energy and finance at University of Tulsa said US LNG shipments could still be profitable in China compared to Europe supplies, others warned the trade dispute could put security of supply at risk and create obstacles for long-term procurement agreements. The European Union is also concerned about Chinese demand for liquefied natural gas, which has been growing rapidly as domestic production capacity increases due to increased use by countries such as India and China.
China's implementation of a 10% tariff on US liquified natural gas (LNG) imports could hamper growth for American producers looking to secure long-term buyers, according to industry observers. While Ronald Ripple, professor of energy and finance at University of Tulsa said US LNG shipments could still be profitable in China compared to Europe supplies, others warned the trade dispute could put security of supply at risk and create obstacles for long-term procurement agreements. as for those buyers who have already placed orders, some will look to divert cargoes from the US to other countries due to the trade war.