China has stopped importing liquefied natural gas (LNG) from the United States for the longest period in nearly two years, as ongoing trade tensions force a rerouting of energy supplies.
The halt, lasting over 40 days, marks a significant change since mid-2023, driven by the tariffs China imposed in retaliation against U.S. trade measures. These tariffs have led Chinese companies to divert shipments originally destined for China to other global markets, particularly Europe. This move showcases the persistent impact of the trade conflict initiated during the previous U.S. administration, which has considerably strained the energy trade between the world’s largest LNG producer and consumer.
The tariffs, set at 15%, have pushed Chinese buyers with long-term U.S. commitments to resell their orders overseas. Additionally, Chinese firms are now hesitant to engage in new LNG deals with U.S. producers, opting instead to explore options within the Asia-Pacific region and the Middle East. Recently, China Resources Gas International secured a 15-year agreement with Australia’s Woodside Energy Group Ltd., marking a significant shift in sourcing and reflecting enhanced Sino-Australian relations.
Domestically, China is amplifying its gas production efforts, aiming to bolster energy independence and reduce import reliance. A substantial year-on-year increase in Chinese gas output has been observed in the initial months of 2025, contributing to a more diversified energy portfolio. Meanwhile, the availability of competitively priced alternatives such as coal and renewable energy further diminishes China’s need for U.S. LNG.
Related Stories
Despite a brief recovery in U.S. LNG imports by China after 2020, which saw volumes soar to over 400,000 tons monthly, recent U.S. diplomatic remarks suggest leveraging LNG as a bargaining tool. This stance has generated little enthusiasm from Chinese stakeholders, complicating efforts by U.S. developers to secure contracts essential for new projects.
As geopolitical tensions redefine global energy landscapes, China’s decisions in LNG procurement illustrate a strategic pivot away from reliance on U.S. energy resources. This shift not only emphasizes the ramifications of international trade policies but also highlights China’s pursuit of energy diversification and security.
