Cheniere dismisses US-China ‘trade war’ impact
US LNG exporter Cheniere said that the ongoing trade tussle between the United States and China will not have any economic impact on the company.
To remind, the Chinese government has recently added US liquefied natural gas to the list of import products that could be facing a 25 percent tariff.
Speaking during Cheniere’s earnings conference call, company’s CEO and president Jack Fusco, said, “we are awaiting details of the proposed tariffs and are hopeful that the U.S. and China can resolve the trade dispute without these tariffs being implemented.”
He added that the company does not foresee any economic impact to its existing long-term deals with PetroChina, that also supports the financing of the third liquefaction train at the Corpus Christi liquefaction project in Texas.
In February this year, Cheniere signed two sale and purchase deals with PetroChina that are set to start this year and go on through 2043.
“From a high level, our business is a very long-term one, and it is well understood that China needs more LNG over the long-term,” Fusco said.
He added that LNG is considered an important variable to help resolve the trade spat between the two countries.
“China is an important growth market for Cheniere, and we continue to build and solidify relationships with key Chinese counterparties,” Fusco said noting the company is expecting to sell “meaningful amounts of LNG into China over long term.”