BNEF Brief: China Flags 25 Percent Tariff on U.S. LNG

The video discusses the impact of a 25% tariff on US natural gas exports, particularly during the winter season when demand is high. Despite the tariff, exporting US gas to Asia remains profitable. However, the tariff could affect future US LNG development, especially in securing Chinese contracts. This may lead to a reshuffling of global LNG markets, with US producers seeking new buyers in Europe and smaller countries. Chinese buyers might avoid US LNG due to political reasons, potentially increasing global LNG prices.

What factors contribute to the price difference between US gas and Asian LNG?

In what ways might the global LNG market be reshuffled due to the tariffs?