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ENERGY: Co. to Serve Other Customers; It May Hurt Facility Construction
The Chinese government's new schedule of tariffs should be no concern for San Diego's Sempra Energy, according to at least one industry analyst.
Sempra (NYSE: SRE) is getting into the business of exporting liquefied natural gas, or LNG. China is expected to be a big importer in future years. However, the U.S.-China trade war seems to complicate the plans of U.S. companies planning to serve the China market. China announced in mid-September that it is placing a 10 percent tariff on liquefied natural gas, or LNG, effective Sept. 24.
"China tariffs won't impact Sempra," said Shahriar Pourezza, an analyst with Guggenheim Securities LLC, noting that Sempra is concentrating on other markets. South Korea, Japan, Poland, India and France are the countries that will buy Sempra's exports, the analyst said. Guggenheim does business with Sempra; Pourezza rated Sempra stock as a Buy, setting a $127 price target in an Aug. 6 research note following the company's latest...