Chinese buyers of liquefied natural gas (LNG) are increasingly redirecting U.S.-sourced cargoes to Europe and other Asian markets as tariffs imposed by Beijing make imports financially unviable.
China, the world’s largest LNG importer, introduced a 15% tariff on U.S. LNG in February and announced additional levies on all U.S. goods starting April 10, in response to new U.S. tariffs.
As a result, China imported no U.S. LNG in March, according to shipping data. Last year, U.S. supplies accounted for about 5% of China’s total LNG imports.
The pressure is expected to intensify with the start of new multi-year contracts this month. China’s Sinopec has begun receiving shipments under a deal to purchase 1 million metric tons annually from Venture Global’s Calcasieu Pass LNG project, while CNOOC is also starting a five-year agreement for 0.5 million tons per year.
April cargoes have already been redirected to other buyers.
Several Chinese importers, including Sinochem Group, Foran Energy, and PetroChina, have been actively reselling U.S. cargoes into Europe, where delivered LNG prices are currently more favorable compared to Asia. Delivered prices to Europe are estimated around $12 per million British thermal units (mmBtu), slightly lower than spot Asian prices.
China’s LNG imports totaled 4.5 million metric tons in February, the lowest since April 2022. Meanwhile, city gas distributors are seeking lower-priced spot LNG in the $8–9/mmBtu range, underscoring weaker domestic demand amid the high tariffs and elevated global prices.
The trend highlights growing challenges for U.S. LNG exporters targeting the Chinese market, as trade tensions continue to disrupt energy flows between the two largest economies.
