PetroChina Co Ltd (HK:0857) is reportedly considering halting purchases of the U.S.’s liquefied natural gas (LNG) spot cargoes in winter due to the increased tariffs amidst the trade dispute the U.S. and China, Bloomberg reported on Monday.
Citing sources with knowledge of the strategy, the article said the Chinese company is likely to bolster purchases of spot cargoes from other countries or swap U.S. shipments with nations in East Asia.
China might suffer when the demand and prices of LNG hike during winter heating season, Bloomberg noted.
China National Petroleum, the country’s biggest gas supplier, signed a 25-year deal to buy U.S. LND and some of the supply is expected to start this year.
“China imposing tariffs on LNG imports from the U.S. marks a shift in strategy, but this action is more likely to hurt Chinese buyers than U.S. exporters. Chinese buyers will pay a higher price for their imports,” said Katie Bays, an analyst at Height Securities LLC.
