China to Resell First US LNG Cargo in a Year Instead of Importing It
China to Resell First US LNG Cargo in a Year Instead of Importing It Chinese buyers that received the first U.S.
LNG cargo in over a year plan to resell it on another market to profit from higher prices elsewhere and avoid paying a 25% tariff, sources familiar with the plans toldBloombergon Monday.
The Yangpu port in south China earlier this month received a cargo of U.S.
LNG from the Plaquemines LNG export terminal operated by Venture Global in Louisiana’s Plaquemines Parish.
shipment of gas to China in more than a year.
But the gas was offloaded into bonded storage, without being actually imported into China, because the buyer would have paid a 25% tariff on the cargo.
The cargo was bought with the intention to resell for higher prices at a non-Chinese market, according to Bloomberg’s sources.
An empty tanker has recently docked at Yangpu, likely to load the gas for re-export, vessel-tracking data monitored by Bloomberg showed.
The move suggests that China is not so starved of LNG as to be willing to pay the 25% tariff to resume importing U.S.
Despite the Middle East war that has been choking Qatari and UAE exports for five months now, China’s LNG imports have rebounded in recent weeks amid higher seasonal demand.
China raised its liquefied natural gas importsfor a second month in a rowin June as the world’s top LNG buyer prepares for peak summer power demand.
Chinese imports of LNG jumped by 8.3% from a year earlier to 5.68 million tons in June, according to official customsdatareleased last week.
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| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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