China shuts out U.S. LNG

Bloomberg News reports that China has not imported liquefied natural gas (LNG) from the United States for 40 days, marking the longest gap in almost two years, as traders divert shipments to other regions to avoid Beijing’s tariffs on the super-chilled fuel.

According to ship-tracking data compiled by Bloomberg, this barren streak is the longest since June 2023. Additionally, data from analytics firm Kpler reveals there are currently no U.S. LNG shipments en route to China.

The trade tensions sparked by the Trump administration continue to strain the trade relationship between the world’s largest LNG exporter and importer. In February, Beijing imposed a 15% tariff on U.S. LNG shipments in retaliation for U.S. tariffs on Chinese exports.

As a result, Chinese buyers with long-term commitments to U.S. LNG projects are now reselling these shipments to Europe, traders report. Meanwhile, Chinese companies are increasingly hesitant to sign new contracts with U.S. suppliers and are seeking alternatives from the Asia-Pacific region or the Middle East instead.

In a notable shift, China Resources Gas International recently secured a deal to buy LNG from Australia’s Woodside Energy Group Ltd. for 15 years, starting in 2027. This is the first such agreement between Chinese and Australian companies in years, signaling a recovery in trade ties between Beijing and Canberra after years of strained relations.

Woodside Energy of Australia has won a 15-year contract to supply LNG to China. Bloomberg News reports China has not received a single cargo of U.S. liquefied natural gas in 40 days and there are currently no LNG tankers en route to the country. (Image: Woodside Energy)

China is also focusing on increasing its domestic gas production to reduce its reliance on imports. This effort has seen steady growth, with gas output rising by 3.7% year-on-year in the first two months of 2025. Additionally, alternative energy sources, such as coal, renewables, and gas piped from Russia, are helping to alleviate demand for imported LNG.

The trade war under the first Trump administration had previously halted U.S. LNG exports to China. However, since 2020, Chinese imports of American gas have risen significantly, averaging over 400,000 tons per month.

In January, U.S. Secretary of State Marco Rubio suggested that LNG could be used as leverage in future trade negotiations. However, China has not shown interest in using LNG in such discussions, a development that could hinder U.S. developers’ efforts to secure new contracts and launch new LNG projects.