Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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China has imposed a 10% import tariff on any LNG shipments from the US.

The initial LNG tariff rate China contemplated was 25%, but the current 10% tax is expected to rise in step with the tit-for-tat rise in import taxes between Trump and China.

"It's obviously very concerning. The potential for some projects to get delayed is very real," said Charlie Riedl, executive director of the Center for Liquefied Natural Gas, a trade group that represents Exxon, Chevron, Shell and other energy companies.

In the 12 months leading up until June 2018, China was the second-largest buyer of US LNG, according to energy consulting firm Wood Mackenzie. and the US subsidiary of Royal Dutch Shell (RDSA), was the largest seller.

These US LNG sales will end as Beijing switches to LNG suppliers in Qatar, Russia and Australia. While sad news for firms like perennial loser Cheniere, it's curiously good news for global energy firms like Chevron which produces a large quantity of LNG in Australia.

It's not know what will become of the contract Cheniere signed in February with China National Petroleum Corporation to sell 1.2m tonnes of LNG per year until 2043.

The 10% Chinese tariff also puts into question the proposed Exxon/Qatar Golden Pass LNG terminal in Sabine Texas. Alibaba founder Jack Ma has suggested the tariff war is likely to last for the next 10 to 20 years as neither side is likely to concede anything.