Tuesday, August 12, 2025

China halts US LNG imports as trade war reroutes deliveries

Date:

China hasn’t imported liquefied natural gas from the US for 40 days, the longest gap in almost two years, as traders are forced to divert shipments elsewhere to avoid Beijing’s tariffs on the super-chilled fuel.

The barren streak is the most extended since June 2023, according to ship-tracking data compiled by Bloomberg. There currently aren’t any US shipments en route to China either, according to ship-tracking data from Kpler, an analytics firm.

The trade war provoked by the Trump administration is threatening to decouple the world’s biggest LNG seller and buyer. Beijing slapped a 15% tariff on US LNG shipments from Feb. 10 in retaliation for blanket American levies on Chinese exports. In response, Chinese gas buyers with long-term commitments to US projects are reselling those shipments to Europe, according to traders. Firms in China are also reluctant to sign new deals with US facilities, and are looking to procure supply from Asia-Pacific or the Middle East instead.

China Resources Gas International on Monday agreed to buy LNG from Australia’s Woodside Energy Group Ltd. from 2027 for 15 years. It’s the first term-supply deal involving Chinese and Australian companies in years, and follows improved ties between Canberra and Beijing after trade relations hit a nadir at the start of the decade.

China is also boosting its energy security by focusing on producing more gas at home, which will help to curb import growth. Output has been steadily rising, and notched a 3.7% year-on-year increase in the first two months of 2025. At the same time, cheaper alternatives, from coal to renewables to gas piped overland from Russia, are taking the edge off Chinese demand for seaborne gas.

The last trade war under the first Trump presidency brought US LNG sales to China to a halt. Since resuming in 2020, Chinese imports of American gas have risen dramatically to average over 400,000 tons a month.

In January, Secretary of State Marco Rubio said LNG should be used as leverage in a new round of trade negotiations. China isn’t among the countries playing ball, though, which bodes ill for US developers trying to secure contracts to kick-start new projects.

On the Wire

China’s action plan to revive consumption follows up on a pledge to deliver stronger steps to lift demand — and it’s a good start, said Bloomberg Economics. Copper rose to a five-month high.

Donald Trump wants to keep Chinese carmakers out of the US, but that won’t stop them from taking over the rest of the world. BYD Co. unveiled a new system for electric cars that the Chinese automaker says will allow them to charge almost as fast as it takes a regular car to refuel.

China’s government has renewed export registrations for some US meat plants whose eligibility was set to lapse, raising hopes that shipments won’t be disrupted.

China will help increase capacity at two solar projects in Kuwait, further boosting ties after the two countries agreed to develop a long-delayed strategic port.

Global CEOs including Qualcomm Inc.’s Cristiano Amon and Saudi Aramco’s Amin Nasser will travel to Beijing for an annual gathering of top executives, people familiar with the matter say, with some expected to meet President Xi Jinping and other top leaders. Xi, meanwhile, will soon visit Washington, according to President Trump.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Page Industries Q1 Results: Profit and margin grow from last year; ₹150 dividend declared

Shares of Page Industries Ltd. fell as much as...

TCS partners with NOW Corp to boost Phillippines’ cloud and digital infrastructure

India’s largest IT services provider, Tata Consultancy Services (TCS),...

Upcoming IPO: Mumbai-based Powerica files draft papers with Sebi to raise ₹1,400 crore via public issue. Details here

आगामी आईपीओ: मुंबई स्थित पावर सॉल्यूशंस प्रदाता, पॉवरिका लिमिटेड...

Donald Trump says gold will not face tariffs

President Donald Trump said gold will not face tariffs,...