Chinese Tariff On LNG Raises Texas Energy Biz Concerns

Sep 19, 2018

LNG EXPORT TERMINAL - A Chinese ship ingests liquified natural gas (LNG) at the Cheniere export terminal at Sabine Pass near Texas -Louisiana border.
Credit Courtesy: Cheniere Energy

CHINA: A BIG  TX  LNG CUSTOMER -  Texas natural gas is now on China’s list of American goods facing a 10% retaliatory tariff, a result  of  growing trade tensions  which  has  the  energy  industry concerned.  China is the third-largest importer of U.S. liquefied natural gas.  Most  is  exported  from  a facility on the Texas-Louisiana  border.  Similar terminals costing in the billions of dollars are in the works up and down the Texas coast.

The LNG industry and Houston business leaders have warned such an escalation in trade tensions could  jeopardize  LNG deals and  the  future  of those 

A LONG TERM BUSINESS - Cheniere Energy is the nation's largest exporter of LNG and China is a major customer of Texas LNG.
Credit Courtesy: Cheniere Energy

facilities and the jobs that go with them.

University of Houston economist  ED HIRS shares his observations with Texas Public Media. He said “If this keeps expanding, and there continues to be a tit-for-tat retaliation, this will cause diminished economic activity for everyone involved.”        

Still, some are staying optimistic. Recently the head of Cheniere Energy, the nation’s largest LNG exporter, was quoted as saying  the business is a “very long-term one,” and that it’s continuing to “solidify” relationships in China.