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US LNG Producers Fear Further Price Drops From US-China Trade Deal
2020-01-31 11:20:00| OGI
China has restarted talks with U.S. LNG marketers to buy more LNG, several industry executives told Reuters, but they are worried that any purchases may come too late to keep natural gas prices from falling further due to a glut of global supply. China pledged this month to buy an additional $18.5 billion in U.S. energy products this year, but the U.S.-China trade agreement left tariffs in place, including a 25% levy on LNG imports that puts U.S. LNG at a disadvantage, producers said. "The U.S. doesn't have a margin that would allow any country to charge 25%" above global prices, said Michael Smith, CEO of Freeport LNG, referring to the tariff. Until that tax is removed, "it's a non-starter," he said.
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Category:Industrial Goods and Services