Despite a 10% tariff imposed on US LNG, the gas is cheaper in China than other sources, according to industry sources. Shipments of the gas from the US to China are 9% cheaper than other key suppliers, based on calculations of long-term prices for US cargoes, shipping expenses and loading capacity fees, as calculated by Reuters and industry sources. The Chinese government has also been pushing LNG export projects that would help it meet its growing energy needs. In August, only one LNG tanker from the US made its way to China, and none have been loaded so far in September.
Despite a 10% tariff imposed on US LNG, the gas is cheaper in China than other sources, according to industry sources. Shipments of the gas from the US to China are 9% cheaper than other key suppliers, based on calculations of long-term prices for US cargoes, shipping expenses and loading capacity fees, as calculated by Reuters and industry sources. Nevertheless, state-owned oil refiners, as well as non-state-owned buyers, are avoiding US supplies until trade tensions ease. In August, only one LNG tanker from the US made its way to China, and none have been loaded so far in September.