LNG Tanker to Discharge First US Cargo in China in 13 Months

Jessica Jaganathan
Monday, April 20, 2020

The tanker Maran Gas Vergina has arrived in China with the first delivery of U.S. liquefied natural gas (LNG) in 13 months, shipping data showed on Monday.

This is the first shipment since March 2019 after a long-standing trade war in which China raised tariffs on LNG imports from the United States to 25% last year.

The tanker berthed on Monday in Tianjin, where China National Offshore Oil Corp (CNOOC) and Sinopec operate LNG terminals, ship-tracking data from Refinitiv and data intelligence firm Kpler showed.

Aboard is a cargo that loaded at the Freeport LNG plant in Texas.

Three more U.S LNG deliveries are expected in China in April and two cargoes are scheduled to be discharged in May, Refinitiv data showed.

Two of the vessels expected in April, the Palu LNG and the Cool Explorer, loaded at Cheniere Energy's Corpus Christi plant in Texas and its Sabine Pass plant in Louisiana, respectively, according to the data.

Another vessel, the SK Resolute, loaded at Sempra LNG's Cameron plant in Louisiana.

The vessels expected in May, the Gaslog Geneva and the Arwa Spirit, are carrying cargoes loaded at Sabine Pass and Corpus Christi, respectively.

Beijing has started granting tax waivers to LNG importers, three sources told Reuters earlier this month, with two of them adding the tariff had dropped to zero, though a separate value-added tax of 10% still applies.

China announced in February that it would grant exemptions on retaliatory duties imposed against 696 U.S. goods after both sides reached a Phase 1 trade deal that took effect on Feb. 14.

As the coronavirus lockdowns continue to put pressure on LNG demand in some of the key markets, an LNG trader said there were signs of "going back to normal" in China, with demand there slightly recovering. 

(Reporting by Jessica Jaganathan in Singapore, Ekaterina Kravtsova in London; editing by Jason Neely and Susan Fenton)

Categories: Tankers LNG Asia North America China USA

Related Stories

Saipem Poised for Middle East Repair Work After Iran War

Valeura Charters Shelf Drilling’s Jack-Up Rig for Gulf of Thailand Ops

US-Israel War on Iran Creates Biggest Energy Crisis in History

Oil Flows to Lag Even if Hormuz Strait Reopens

Oil Rises as Fragile Middle East Ceasefire Sustains Supply Risks

Oil Hikes 7% after Trump Says US-Israel will Keep Striking Iran

INPEX Extends Pertamina LNG Pact, Signs Upstream MoU in Southeast Asia

Iran War Sends LNG Prices Soaring, Curbing Asia Demand

Oil Rises as Iran Denies US Talks, Supply Risks Persist

Qatar LNG Exports Cut 17% After Missile Strikes, $20B Revenue Loss Expected

Current News

Saipem Poised for Middle East Repair Work After Iran War

Middle East Conflict Jolts Offshore Drilling Market

Bureau Veritas Expands Offshore Services with New Asia Hub

Valeura Charters Shelf Drilling’s Jack-Up Rig for Gulf of Thailand Ops

Oil Prices Jump as Ships Come Under Fire in Strait of Hormuz

US-Israel War on Iran Creates Biggest Energy Crisis in History

Jadestone Secures Gas Sales Deal for Fields Offshore Vietnam

Oil Flows to Lag Even if Hormuz Strait Reopens

Eni Makes Major Gas Discovery Offshore Indonesia

Strike Threat Grows at Ichthys LNG after Workers Reject Deal

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com