US-China trade deal has strong potential for LNGC tonne-mile boost
The Phase 1 trade deal between the US and China has the potential to boost LNGC tonne-mile demand. But for now, it is only potential. While China's import tariffs on US LNG remain in place, it is not likely that US LNG flows to China will rise significantly. If China were to reduce or remove tariffs, and cover most of its 2020/21 uncontracted LNG demand from the US, this could increase lng tonne-mile demand by 3-4% over current trading patterns.