China has now gone without importing liquefied natural gas (LNG) from the United States for 40 consecutive days, marking the longest gap in nearly two years. This significant break in trade is the result of Beijing’s 15% tariff on U.S. LNG shipments, which took effect on February 10, as a retaliatory measure for U.S. tariffs on Chinese exports.
According to ship-tracking data, this is the longest such hiatus since June 2023. Current data from analytics firm Kpler shows there are no U.S. LNG shipments on route to China at present.
The tariff dispute, stemming from the trade war initiated during the Trump administration, has caused a disruption in the global LNG trade. The world’s largest LNG buyer and seller appear to be on the brink of decoupling, with China diversifying its sources of energy. Chinese companies are reselling U.S. LNG shipments to European markets and are also hesitant to enter into new contracts with U.S. facilities. As a result, China is increasingly sourcing its LNG from the Asia-Pacific and Middle East regions.
In a related move, China Resources Gas International recently agreed to a landmark 15-year deal with Australia’s Woodside Energy Group, securing LNG supplies from 2027. This marks the first term-supply agreement between a Chinese and Australian company in years, following a thaw in relations between Beijing and Canberra after a period of strained trade relations early in the decade.
To further reduce dependency on imports, China is increasing its domestic gas production, which has grown by 3.7% year-on-year in the first two months of 2025. The country is also leveraging cheaper alternatives such as coal, renewables, and pipeline gas from Russia to supplement its energy needs, which is further curbing its demand for seaborne LNG.
The halt of U.S. LNG exports to China is reminiscent of the previous trade war under the first Trump administration, which also led to a suspension of LNG sales. After trade resumed in 2020, U.S. LNG exports to China surged, reaching an average of over 400,000 tons per month. However, with ongoing political tensions, future trade agreements look increasingly uncertain.
In January, U.S. Secretary of State Marco Rubio suggested that LNG could be used as a negotiating tool in future trade talks. However, China has not shown any willingness to engage in such discussions, which spells trouble for U.S. developers seeking to secure contracts for new projects.
As the trade war continues to evolve, both countries face growing challenges in securing and maintaining energy supply chains, with far-reaching implications for the global LNG market.
Related topic:
Woodside Signs Landmark LNG Deal with China Resources
