China Halts All Imports of US Liquefied Natural Gas Amid Trade Tensions

China Suspends US LNG Imports Amid Soaring Tariffs and Geopolitical Shifts

China has completely halted imports of liquefied natural gas (LNG) from the United States for over ten weeks, marking a significant shift in global energy trade dynamics.

According to The Financial Times, shipping data shows that no US LNG has reached China since a 69,000-tonne tanker from Corpus Christi, Texas, arrived in Fujian province on February 6. A second shipment intended for China was rerouted to Bangladesh after failing to arrive before Beijing imposed a 15% tariff on US LNG on February 10.

That tariff has since been raised to 49%, effectively pricing American gas out of the Chinese market. The current freeze mirrors a similar suspension during the first term of former US President Donald Trump, which lasted more than a year.

Analysts warn that the renewed standoff could have lasting implications. Anne-Sophie Corbeau, a gas expert at Columbia University’s Center on Global Energy Policy, said, “There will be long-term consequences. I do not think Chinese LNG importers will ever contract any new US LNG.”

The suspension comes amid broader geopolitical tensions and shifting alliances. Following Russia’s invasion of Ukraine, China scaled back LNG imports from the US, choosing instead to reroute American cargoes to Europe, where prices were higher. In 2024, only 6% of China's LNG imports came from the US, down from 11% in 2021.

Despite the current freeze, Chinese energy giants like PetroChina and Sinopec remain bound by 13 long-term contracts with US LNG suppliers—some stretching as far as 2049. These deals were pivotal in financing large-scale LNG infrastructure in the US, though rising inflation and tariff costs are now prompting calls for contract renegotiation.

Gillian Boccara, an analyst at energy intelligence firm Kpler, painted a grim short-term picture for US-China LNG trade. “The last time this happened, the market only resumed after Beijing issued waivers—at a time when gas demand was booming,” she said. “Now, with slower economic growth, China can likely endure the loss of US cargoes for quite some time.”

As US supplies become less viable, China is intensifying its energy ties with Russia. Zhang Hanhui, China’s ambassador to Russia, confirmed that growing numbers of Chinese buyers are seeking assistance in establishing connections with Russian LNG suppliers.

Russia has become China's third-largest LNG provider, behind Australia and Qatar. The two countries are also progressing talks on the Power of Siberia 2 pipeline, which would further cement their strategic energy partnership.

“With tariffs now acting as a de facto embargo, global trade flows are being reshuffled,” said Richard Bronze of Energy Aspects. “We also anticipate a 5–10 million tonne decline in Asian LNG demand, which may help ease prices in Europe.”