(The opinions expressed here are those of the author, a

columnist for Reuters)

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Chinese buyers of US LNG could divert cargoes to Europe

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China's share of US LNG offtake set to grow

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Tit-for-tat tariffs could impact new US LNG projects

By Ron Bousso

LONDON, Feb 6 - The burgeoning trade war between the

United States and China has caught American gas exporters in the

crossfire as they face the prospect of losing their edge in the

world's fastest-growing LNG market.

Buyers of U.S. fuel will likely respond by redirecting more

supply to Europe, where gas prices are today stronger than in

Asia, a short-term solution that could even benefit Chinese

traders.

Beijing slapped a 15% tariff on imports of U.S. liquefied

natural gas, after U.S. President Donald Trump announced last

Saturday that he was placing a 10% charge on all Chinese

imports.

This move will have minimal impact on China's energy

markets, given that U.S. LNG represents only 5.5%, or 4.3

million metric tons, of its total LNG imports, according to

Kpler data.

But the effect on U.S. gas exporters could be far greater if

these tariffs prove durable.

Until recently, Asia, and China in particular, were

considered key growth markets for the rapidly expanding U.S. LNG

sector, which is expected to see supply double to around 200

million tons per year (mtpa) by 2028 from 100 mtpa currently,

according to LSEG data.

China's share of U.S. LNG offtake is set to grow sharply.

Chinese importers have committed to buying nearly 20 million

metric tons per year from existing and new U.S. export terminals

in contracts that often exceed 20 years, according to Reuters

calculations.

Such long-term contracts are vital for U.S. companies

seeking to secure financing for expensive LNG production

facilities. A China-U.S. trade war would likely dampen Chinese

companies' appetite to sign further supply contracts, casting

doubt on the viability of the next wave of U.S. projects that

would start towards the end of the decade.

President Trump once famously quipped that "trade wars are

good and easy to win", but identifying any long-term winners

here is likely to prove challenging.

(Writing by Ron Bousso; editing by David Evans)