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re: Chinese put tariffs on LNG

Posted on 8/6/18 at 8:09 am to
Posted by udtiger
Over your left shoulder
Member since Nov 2006
99852 posts
Posted on 8/6/18 at 8:09 am to
Who knew China had a burgeoning LNG industry?

If they don't, this is possibly the dumbest thing a country could do.
Posted by GumboPot
Member since Mar 2009
119623 posts
Posted on 8/6/18 at 8:21 am to
quote:

If they don't, this is possibly the dumbest thing a country could do.




Yeah, it will just increase their energy cost, but those Chinese industries will be subsidized further on the back end. So the net effect will be zero.

The overarching factor in the LNG market is energy demand which is the overall global economy. In this situation tariffs might price the U.S. out of competition from other counties like Australia or Qatar. However the market is growing as more LNG terminals are being built so the U.S. producers will easily find other markets.

And ironically if U.S. producers have trouble finding other markets besides China, that means cheaper natural gas prices for U.S. consumers.
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