In this Instant Insight, the author tried to answer the question: "What are the potential consequences of China's introduction of LNG tariffs and ban on U.S. LNG imports until 2030?"
To answer it, the author ran the World Gas Model developed by Nexant using three Scenarios . The first Scenario is a baseline scenario developed by Nexant, describing business-as-usual development of the world gas market as if no spat between China and the U.S. took place. In Scenario 2, one modification (a 125% tariff on LNG imports from the U.S. to China) was introduced by the author of this paper. Scenario 3, on top of a 125% tariff, blocked out US-China LNG trade routes and cancelled LNG contracts between the two countries.
