U.S. LNG Tanker Heading To China! First After Tariff Raise On LNG Imports!

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  • Laden LNG tanker heading to China from U.S., first since March 2019.
  • The tanker SK Resolute loaded the cargo from the Cameron LNG terminal on March 22, iInitially heading to Cristobal, Panama.
  • The tanker’s destination was changed to Tianjin in China on March 28 and is expected to arrive at the Chinese port on April 28, taking a longer route.
  • It would be the first since China raised tariffs on LNG imports from the United States to 25% last year. 

The first LNG tanker heading to China from the U.S since March 2019, reports Reuters.

First tanker since March 2019

According to shiptracking data from Kpler and Refinitiv Eikon, a liquefied natural gas (LNG) tanker which loaded a cargo from the United States is currently heading to China, the first shipment since March 2019. 

Destination change

The tanker SK Resolute loaded the cargo from the Cameron LNG terminal on March 22. Initially the tanker was to head to Cristobal, Panama.

According to the data, the tanker’s destination was changed to Tianjin in China on March 28 and is expected to arrive at the Chinese port on April 28.

Taking a longer route

Rebecca Chia, an analyst at Kpler said the tanker was heading to Tianjin, taking a further route via the Cape of Good Hope that takes around 38 days compared with via the Panama Canal which takes around 25 days.

She added that there is still potential for the tanker to divert.

LNG imports from U.S.

Tankers sometimes are rerouted while in transit. It remains unclear if this ship’s destination might be changed.

If without any further destination change, this shipment arrives in China, it would be the first since China raised tariffs on LNG imports from the United States to 25% last year. 

Retaliatory duties 

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

Exemptions valid for one year

Firms were supposed to submit their applications on March 2 and exemptions granted will be valid for one year.

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Source: Reuters