• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 7 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 2 hours Governments that wasted massive windfalls
  • 1 day Let’s take a Historical walk around the Rig
  • 5 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 10 hours Trump has changed into a World Leader
  • 3 days US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 20 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 day Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 3 days Might be Time for NG Producers to Find New Career
  • 37 mins 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 hours Trump capitulated

Global Energy Advisory – 21st September 2018

Tanker

This week saw the latest exchange of tariffs between Washington and Beijing, and this time there is a likely to be a tangible negative impact on the U.S. LNG industry.

Following President Trump’s approval of tariffs on $200 billion worth of Chinese goods, China retaliated with its own list containing goods worth US$60 billion. The list included LNG, which will be subject to a 10% import tariff.

Now, while some in the industry breathed a sigh of relief that the tariff rate is much lower than the initially threatened 25%, the news is not exactly good. The U.S. is certainly one of the focal points of the LNG industry right now, but it’s worth noting that it is not the only such focal point.

Qatar is expanding its production capacity, for one thing. For another, one more megaproject in Australia started operation earlier this year—Inpex’s Ichthys—and another, Shell’s Prelude FLNG, is scheduled to launch before the year’s end. Meanwhile in Russia, Novatek is gearing up for the start of construction of its second LNG facility in the North.

U.S. LNG producers have a lot of planned capacity but building it requires money, most of which is secured via long-term LNG purchase commitments. Unsurprisingly, Chinese LNG buyers are among the top picks for such projects given projections that China will be the biggest driver behind LNG demand in Asia and globally in the coming years. From this perspective, the worsening bilateral…




Oilprice - The No. 1 Source for Oil & Energy News