Oil Traders Seek China Tariff Waivers as US Shipments Approach

SINGAPORE (Reuters) - Oil and gas traders are expected to request waivers from China for tariffs on US crude and liquefied natural gas (LNG) set to take effect on February 10, trade sources said Thursday.

The move comes after China's Finance Ministry announced levies of 15% on US coal and LNG imports and 10% on crude oil, farm equipment, and some autos.

Four tankers carrying 6 million barrels of US West Texas Intermediate (WTI) and Alaskan North Slope (ANS) crude, as well as two LNG vessels, are currently en route to China, according to data from analytics firms Kpler and LSEG.

Companies are seeking waivers for already booked tankers, three oil traders said. However, obtaining waivers for new deals may prove more challenging.

Unipec, the trading arm of China's largest refiner, Sinopec, has long-term agreements and a presence in the US pipeline oil business. A source close to the company said Unipec may increase swaps with other countries or sell more to US customers.

At least eight Very Large Crude Carriers (VLCCs) have been chartered by companies including Vitol, Gunvor, Occidental, ExxonMobil, and Atlantic Trading and Marketing Inc. (ATMI).

For LNG, the Mu Lan and Wudang vessels are scheduled to arrive in China this week. Kpler analysts predict a decline in US LNG flows to China, with Europe and other Asian destinations benefiting.

"China is expected to import more LNG from Qatar, Russia, and other suppliers to offset potential US reductions," they noted.

US Oil Shipments En Route to China:

* Sea Lion: Loading date December 18, Volume 2 million barrels, Grade West Texas Light, Destination Zhanjiang, Guangdong, ETA February 11, Charterer Gunvor
* Sonangol Huila: Loading date January 26, Volume 1 million barrels, Grade ANS, Destination Qingdao, ETA February 14, Charterer NA
* Ulysses: Loading date January 17, Volume 2 million barrels, Grade WTI Midland, Destination Qingdao, ETA March 18, Charterer ATMI
* Kondor: Loading date January 24, Volume 1 million barrels, Grade WTI, Destination China, ETA April 1, Charterer NA