China intends to humiliate America soon
May 21, 2019 - 12:07 PM
Number of readings: 17 ━ Section: Business and Finance
China plans to raise tariffs from 10% to 25% on imports of liquefied natural gas from the United States, what is a disastrous shift to the LNG industry in the United States.
The Chinese cartoons come in response to Washington's "hostile" actions. Two weeks ago, US President Donald Trump accused Beijing of blocking trade negotiations and announced a 200-billion-dollar increase in tariffs on Chinese goods.
Trump promised to expand the measures to cover all Chinese imports, Beijing responded, and raised tariffs on US goods worth $ 60 billion, including liquefied natural gas.
China's LNG market is the largest and fastest growing in the world, according to Torres Diaz, head of gas market research at RystadEnergy, which will grow by about a quarter this year.
Based on these data, it was decided to launch most of the projects to build gas liquefaction plants in the United States, recently opened a gas plant in Louisiana, including 3 liquefied gas lines with a total capacity of 13.5 million tons per year.
Because of the trade war between the world's two largest economies, US companies have exported only 300,000 tons of liquefied natural gas (LNG) to China over the past four months, compared with 1.4 million tons exported in the same period last year.
In the midst of these developments, there is a golden opportunity for Russian gas companies to increase their share of the Chinese gas market at the expense of the US share, especially with the start of a new pipeline of 38 billion cubic meters of gas annually called "Siberian power" to pump gas from Russia to China.