Chinese US LNG buyers redirect supplies to Europe and other countries — Reuters

Global trade tensions are escalating. Last week, Donald Trump announced the introduction of new import tariffs, including on Chinese goods. The duties will increase by 34% from April 9. China imposed similar restrictions against the United States on Friday as a response to the US President's actions. They will come into effect from April 10, Reuters notes.

The trade standoff between the world’s two largest economies is complicating things for Chinese natural gas importers. At first, their task was to resell the fuel to Europe, but now they must find alternative markets, ICIS analyst Alex Siow says.

As Laura Page, head of Kpler LNG Insight, notes, since the start of the year, Chinese resellers of US liquefied natural gas (LNG) have supplied Europe with about 70% of the volume recorded for the whole of 2024.

Reuters estimates that resales of the fuel are expected to increase further once the Calcasieu Pass LNG project owned by American company Venture Global begins commercial operations.

Gas supplies from the US to China have become unprofitable after Trump's tariffs and China's retaliatory measures.