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Cheniere continues supplying LNG to China

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LNG Industry,

According to Reuters, an executive at Cheniere has revealed that the company’s sole Chinese contract customer continues to take committed LNG supplies.

Although the January trade agreement between China and the US spelled good news for energy trade between the two nations, travel bans and China’s response to the coronavirus outbreak have sidetracked talks, and are expected to significantly reduce both commercial activity and energy usage.

According to Reuters, Corey Grindal, Senior Vice President of Gas Supply at Cheniere, reportedly said that China’s 25% tariff on US LNG imports, however, remains the main barrier to any further sales.

Speaking on the sidelines of the NAPE Summit in Houston, Texas, Grindal reportedly said: “We don’t sell that much to China. Right now we have one contract and they’re still taking their LNG.

“Coronavirus isn’t the problem. It’s the 25% tariff, and they have still not released that.”

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