China has suspended liquefied natural gas (LNG) imports from the US for 40 days, marking the longest hiatus in the past two years. Bloomberg experts attribute this pause to a 15% tariff imposed in response to US trade policy. As a result, Chinese gas buyers have had to redirect supplies to other markets, such as Europe. They are now reselling US LNG and seeking alternative sources from the Asia-Pacific and Middle East regions.
Meanwhile, China Resources Gas International has inked a 15-year supply deal with Woodside Energy to purchase LNG from Australia. Additionally, China is increasing its domestic gas production, according to Bloomberg.
Historically, during President Trump’s first term, trade tensions halted US LNG exports to China temporarily. When shipments resumed in 2020, imports averaged around 400,000 tons monthly, Bloomberg noted.