China has gone without importing liquefied natural gas (LNG) from the United States for 60 days, marking the longest gap in five years. The break in trade comes as escalating tensions between Beijing and Washington have prompted Chinese buyers to shift their focus to alternative suppliers. Currently, no LNG shipments are being sent from the U.S. to China, according to Kpler, a firm specializing in tracking global ship movements.
During former President Donald Trump’s first term, there was a similar disruption, with China ceasing imports of U.S. LNG for about 400 days, lasting until April 2020, based on data compiled by Bloomberg. Wei Xiong, head of China gas research at Rystad Energy, predicts that zero LNG trade between China and the U.S. is likely to persist throughout 2025. This is expected to be further compounded by an increase in China’s tariff on U.S. LNG from 15% to 49%, a retaliatory measure against U.S. tariffs imposed during the Trump administration. “In the meantime, we expect to see more reselling by Chinese companies,” Xiong added.
The growing geopolitical friction is contributing to a separation between the world’s largest LNG exporter and its biggest importer. China introduced a 15% tariff on U.S. LNG starting February 10, following Washington’s tariffs, and this move was amplified last week when Beijing imposed additional levies on all U.S. imports.
Although Chinese LNG buyers are still bound by long-term contracts with U.S. suppliers, the mild winter and strong inventory levels in China have reduced immediate demand for LNG. This situation provides Chinese traders with the flexibility to resell U.S. LNG to other markets in Europe and Asia, where demand remains high.
This shift has provided a boost to Europe, which has been grappling with the need to replenish LNG inventories and offset the loss of Russian pipeline gas supplies.
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