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China trade dispute threatens LNG exports from U.S., Total CEO says

Published 06/26/2018, 10:39 AM
© Reuters.  China trade dispute threatens LNG exports from U.S., Total CEO says
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  • A trade war with China would be “very bad news” for U.S. exports of liquefied natural gas, warns Total (TOT -0.7%) CEO Patrick Pouyanne.
  • "The U.S. has a very good game to play in the LNG business, but the market is mainly driven by Asia, [particularly] by China,” Pouyanne says.
  • TOT, which is one of the world’s largest LNG suppliers, has been building up its position in the U.S., buying Engie's LNG business, which includes a stake in the Cameron LNG project now under construction in Louisiana, and investing in Tellurian, which is developing the Driftwood LNG project, also in Louisiana.
  • LNG Ltd., an Australian company developing a new export project in Louisiana, says its talks with potential buyers in China have been put on hold until the tariff issue was resolved.
  • China so far has excluded liquefied natural gas from the list of imports from the U.S. that are threatened with additional tariffs, even though other fuels including oil and coal are included, but exporters of U.S. LNG are worried that it could soon be targeted.
  • ETFs: UNG, UGAZ, DGAZ, BOIL, KOLD, UNL, DCNG, GAZB
  • Now read: Natural Gas Head Fake


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