
China has suspended imports of liquefied natural gas (LNG) from the United States for 40 days, marking the longest pause in nearly two years.
This interruption, attributed to ongoing trade tensions, is forcing traders to reroute shipments to avoid tariffs imposed by Beijing on the super-chilled fuel.
The current hiatus in US LNG imports is the longest since June 2023, based on ship-tracking data.
Analytics firm Kpler has also confirmed that there are currently no US LNG shipments en route to China.
This development highlights the continuing trade war that began under the Trump administration, which now threatens to separate the world’s largest LNG seller and buyer.
In response to US levies on Chinese exports, Beijing imposed a 15 per cent tariff on US LNG shipments, effective February 10.
Consequently, Chinese gas buyers with long-term commitments to US projects are reportedly redirecting shipments to Europe.
Chinese companies are also showing reluctance to enter into new agreements with US facilities, choosing instead to secure supplies from the Asia-Pacific or Middle East regions.
Recently, China Resources Gas International finalised a 15-year agreement to purchase LNG from Australia’s Woodside Energy Group, commencing in 2027.
This deal marks the first long-term supply agreement between Chinese and Australian entities in recent years, following improved trade relations between Canberra and Beijing.
China is also focusing on enhancing its energy security by boosting domestic gas production, which has seen consistent growth, with a 3.7 per cent year-on-year increase in the first two months of 2025.
Moreover, cheaper energy alternatives like coal, renewables, and gas from Russia are reducing China’s need for seaborne gas.
The previous trade war during the first Trump presidency led to a halt in US LNG sales to China.
Following their resumption in 2020, Chinese imports of US gas had surged, averaging over 400,000 tonnes per month.
Earlier this year, US Secretary of State Marco Rubio suggested leveraging LNG as a bargaining chip in trade negotiations.
However, China’s current stance presents challenges for US developers seeking contracts to launch new projects.
Overall, China’s LNG imports have fallen to their lowest levels since the onset of the COVID-19 pandemic in early 2020, driven by subdued demand and high prices in Europe, which have diverted shipments away from China.