China ‘completely’ abandons purchasing LNG from US
(MENAFN) China has completely stopped importing liquefied natural gas (LNG) from the United States for over ten weeks, according to the Financial Times, signaling a deepening of trade tensions between the two economic giants.
The freeze follows Beijing’s imposition of steep tariffs—reaching up to 99%—on American energy products, effectively shutting US LNG out of the Chinese market. While most countries were granted a 90-day tariff reprieve by Washington, China was excluded and instead faces cumulative tariffs as high as 145%. In retaliation, Beijing hit US imports with levies of up to 125% and restricted the export of critical high-tech materials.
Shipping data shows that since February, when a US tanker carrying 69,000 tons of LNG docked in China’s Fujian province, no further American LNG shipments have arrived. A second shipment en route to China was rerouted to Bangladesh after failing to beat the February 10 deadline for a newly imposed 15% Chinese tariff—now raised to 49%.
Energy experts say the breakdown in trade could have lasting effects. “I don’t think Chinese LNG importers will ever sign new contracts for US LNG,” said Anne-Sophie Corbeau of Columbia University’s Center on Global Energy Policy.
This development casts doubt on long-term deals already in place. Chinese energy companies, including PetroChina and Sinopec, have signed 13 long-term LNG contracts with US exporters, many of which extend through 2049. These contracts were vital to kickstarting large LNG infrastructure projects in the US and Mexico. Now, project developers are reportedly pushing to renegotiate due to inflation and increased costs linked to the tariffs.
The LNG standoff follows a dramatic 90% cut in Chinese purchases of American crude oil. Analysts say the fallout could push China to deepen its energy partnership with Russia.
China is already ramping up Russian LNG imports. According to Chinese Ambassador to Russia Zhang Hanhui, growing interest from Chinese buyers is fueling plans to expand supply routes, including the proposed Power of Siberia-2 pipeline—although final decisions on the route are still pending.
Russia is now China’s third-largest supplier of LNG, after Australia and Qatar. Last year, China was the largest Asian importer of Russian LNG, with 7 million tons delivered.
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