China Halts US LNG Imports as Trade War Reroutes Deliveries

The barren streak is the astir extended since June 2023, according to ship-tracking information compiled by Bloomberg. There presently aren’t immoderate US shipments en way to China either, according to ship-tracking information from Kpler, an analytics firm.

The commercialized warfare provoked by the Trump medication is threatening to decouple the world’s biggest LNG seller and buyer. Beijing slapped a 15% tariff connected US LNG shipments from Feb. 10 successful retaliation for broad American levies connected Chinese exports.

In response, Chinese state buyers with semipermanent commitments to US projects are reselling those shipments to Europe, according to traders. Firms successful China are besides reluctant to motion caller deals with US facilities, and are looking to procure proviso from Asia-Pacific oregon the Middle East instead.

China Resources Gas International connected Monday agreed to bargain LNG from Australia’s Woodside Energy Group Ltd. from 2027 for 15 years. It’s the archetypal term-supply woody involving Chinese and Australian companies successful years, and follows improved ties betwixt Canberra and Beijing aft commercialized relations deed a nadir astatine the commencement of the decade.

China is besides boosting its vigor information by focusing connected producing much state astatine home, which volition assistance to curb import growth. Output has been steadily rising, and notched a 3.7% year-on-year summation successful the archetypal 2 months of 2025. At the aforesaid time, cheaper alternatives, from ember to renewables to state piped overland from Russia, are taking the borderline disconnected Chinese request for seaborne gas.

The past commercialized warfare nether the archetypal Trump presidency brought US LNG income to China to a halt. Since resuming successful 2020, Chinese imports of American state person risen dramatically to mean implicit 400,000 tons a month.

In January, Secretary of State Marco Rubio said LNG should beryllium utilized arsenic leverage successful a caller circular of commercialized negotiations. China isn’t among the countries playing ball, though, which bodes sick for US developers trying to unafraid contracts to kick-start caller projects.

On the Wire

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