...to trump US plan to become energy leader

China set a tariff on US liquefied natural gas (LNG), casting a shadow over US plans for new export terminals that were expected to turn the United States into the world's second largest LNG seller.

China will impose a 10 per cent tariff on US LNG from September 24. But the rate was smaller than the 25 per cent China had touted, which offered some relief and helped shares in listed US LNG companies climb in early trade.

The tariffs undermine Trump’s drive to make the United States a global energy leader.

LNG, which involves liquefying gas to so that it can be transported by ship rather than pipeline, has become one of the fastest growing commodity trades as nations seek cleaner fuels.

China was the world's second-largest LNG importer last year, behind Japan and ahead of South Korea. New U.S. terminals were expected to account for 60 per cent of all new LNG production coming to market by 2023, according to industry data.

Analysts say the tariffs will particularly hit plans by US companies, such as Cheniere Energy, Sempra and Kinder Morgan, to build new terminals or expand existing ones by adding processing units, known as “trains”.

Stacey Morris, director of energy research at Alerian Indexes, said tariffs would “likely be a negative for LNG projects in the U.S. looking to secure future sales contracts with Chinese customers”.

“Some commercial agreements may be on hold until there is more visibility,” she said, adding that this would likely delay investment decisions on LNG projects.

Cheniere, Kinder Morgan and Dominion Energy declined to comment.