ANL 34.52 Increased By ▲ 0.67 (1.98%)
ASC 15.16 Increased By ▲ 0.26 (1.74%)
ASL 24.83 Increased By ▲ 0.32 (1.31%)
AVN 95.00 Increased By ▲ 3.86 (4.24%)
BOP 7.87 Decreased By ▼ -0.07 (-0.88%)
BYCO 10.31 Increased By ▲ 0.53 (5.42%)
DGKC 126.60 Increased By ▲ 1.85 (1.48%)
EPCL 57.16 Increased By ▲ 1.91 (3.46%)
FCCL 24.50 Increased By ▲ 0.09 (0.37%)
FFBL 27.96 Increased By ▲ 0.01 (0.04%)
FFL 16.04 Increased By ▲ 1.14 (7.65%)
HASCOL 10.02 Increased By ▲ 0.28 (2.87%)
HUBC 80.00 Increased By ▲ 0.83 (1.05%)
HUMNL 6.45 Increased By ▲ 0.21 (3.37%)
JSCL 20.41 Increased By ▲ 0.50 (2.51%)
KAPCO 40.94 Increased By ▲ 0.69 (1.71%)
KEL 3.87 Increased By ▲ 0.02 (0.52%)
LOTCHEM 17.24 Increased By ▲ 0.54 (3.23%)
MLCF 46.91 Increased By ▲ 1.17 (2.56%)
PAEL 36.17 Increased By ▲ 2.69 (8.03%)
PIBTL 10.49 Increased By ▲ 0.19 (1.84%)
POWER 9.35 Increased By ▲ 0.15 (1.63%)
PPL 85.74 Increased By ▲ 0.16 (0.19%)
PRL 25.71 Increased By ▲ 1.21 (4.94%)
PTC 9.45 No Change ▼ 0.00 (0%)
SILK 1.17 Decreased By ▼ -0.09 (-7.14%)
SNGP 39.36 Increased By ▲ 0.10 (0.25%)
TRG 159.61 Increased By ▲ 11.13 (7.5%)
UNITY 30.75 Increased By ▲ 1.12 (3.78%)
WTL 1.43 Increased By ▲ 0.23 (19.17%)
BR100 4,852 Increased By ▲ 65.72 (1.37%)
BR30 25,671 Increased By ▲ 690.82 (2.77%)
KSE100 45,186 Increased By ▲ 445.12 (0.99%)
KSE30 18,485 Increased By ▲ 152.7 (0.83%)

Coronavirus
VERY HIGH
Pakistan Deaths
15,443
11424hr
Pakistan Cases
721,018
505024hr
Sindh
268,750
Punjab
248,438
Balochistan
20,241
Islamabad
65,700
KPK
98,301

China said on Monday it would raise tariffs on liquefied natural gas (LNG) imports from the United States amid a series of additional levies, a move that could further reduce US LNG shipments to the world's fastest growing importer of the fuel.

So far this year, only two LNG vessels have gone from the United States to China, versus 14 during the first four months of 2018 before the start of the 10-month trade war.

On Monday, China said it would boost the tariff on US LNG to 25% starting June 1 versus the current rate of 10pc.

That move came in retaliation for a US increase on Friday in tariffs on $200 billion in Chinese goods to 25pc from 10pc.

Between February 2016, when the United States started exporting LNG from the Lower 48 states, and July 2018, when the trade war started, China was the third biggest purchaser of US shipments of the supercooled fuel.

So far this year, China is not even in the top 15.

"I expect they will have a hard time landing a tanker carrying US LNG in China if they impose a 25 percent tariff on it," said Jack Weixel, senior director at IHS Markit's PointLogic analytics arm.

Natural gas is seen as a bridge fuel between current worldwide use of much dirtier coal for power generation and industrial consumption, and renewable fuels, because it burns cleaner.

It has seen massive growth in sales in recent years, particularly to Asian nations seeking to reduce their dependence on coal.

The United States, meanwhile, is the fastest-growing LNG exporter in the world, and is expected to rank third in exports in 2019, behind Qatar and Australia. China is the second biggest LNG importer in the world behind Japan.

So far, the biggest US LNG producer, Cheniere Energy Inc , has not expressed major concerns about the trade war. Last week, Cheniere, which owns two of the three big operating US LNG export terminals, said the trade war is "unproductive and creates some added costs for our Chinese consumers," but it has not yet materially affected sales.

Shares of Cheniere were down 3.9pc to $65.24 on Monday.

The United States and China started imposing tariffs on each other's goods in July 2018.

As the dispute heated up, China added LNG to its list of proposed tariffs in August and imposed a 10pc tariff on LNG in September.

US LNG sales had already been affected by a 60 percent collapse in Japan Korea Marker (JKM) LNG prices seen since September.

"Weaker JKM spot prices in Asia already killed most of the commercial reasoning for US LNG sales to China.

The tariff is the knockout blow," said Ira Joseph, head of global gas and power analytics at S&P Global Platts.

Copyright Reuters, 2019