LNG Excluded From U.S.-China Tariff Deal, Limiting Impact on Prices
JH Kim
Summary
- The U.S.-China tariff agreement excluded liquefied natural gas (LNG), limiting the impact on major LNG prices.
- Platts said JKM, the Northeast Asia spot LNG benchmark, and TTF, the European natural gas benchmark, were largely unaffected.
- If the U.S.-China trade committee expands negotiations to commodities, talks on resuming U.S. LNG exports to China could follow, though there is no near-term change in LNG trade flows.
Forecast Trend Report by Period
Liquefied natural gas was left out of the latest tariff agreement between the U.S. and China, limiting the deal’s impact on major LNG price benchmarks.
Walter Bloomberg reported on September 29 that commodity pricing agency Platts said LNG’s exclusion from the agreement left JKM, the Northeast Asia spot LNG benchmark, and TTF, the European natural gas benchmark, largely unaffected.
Platts added that the newly formed U.S.-China trade committee could still discuss resuming U.S. LNG exports to China if future negotiations expand to cover commodities.
For now, there has been no immediate change in LNG trade flows. Platts said it could take months before related talks widen.
JH Kim
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