China halts US LNG imports due to tariffs, shifts to alternative sources

China has halted imports of liquefied natural gas (LNG) from the US for 40 days, the longest pause in nearly two years.

This suspension, driven by trade tensions, has compelled traders to reroute shipments to avoid Beijing’s tariffs on the super-chilled fuel, impacting the global LNG market, reported Bloomberg.

The current gap in US LNG imports to China is the longest since June 2023, as per ship-tracking data from Bloomberg.

Additionally, Kpler, an analytics company, confirmed that no US shipments are currently en route to China.

This development underscores the ongoing trade war initiated by the Trump administration, which threatens to decouple the world’s largest LNG seller and buyer.

In retaliation for US levies on Chinese exports, Beijing imposed a 15% tariff on US LNG shipments, starting 10 February.

As a result, Chinese gas buyers with long-term commitments to US projects are redirecting shipments to Europe, according to traders.

Chinese companies are also hesitant to sign new deals with US facilities, opting instead for suppliers in the Asia-Pacific or Middle East regions, the report said.

China Resources Gas International recently agreed to purchase LNG from Australia’s Woodside Energy Group for 15 years, starting in 2027.

This marks the first term-supply deal between Chinese and Australian companies in years following improved trade relations between Canberra and Beijing.

China is enhancing its energy security by increasing domestic gas production, which has grown steadily, with a 3.7% year-on-year rise in the first two months of 2025.

Additionally, cheaper energy alternatives such as coal, renewables and gas from Russia are reducing China’s demand for seaborne gas.

The previous trade war during the first Trump presidency halted US LNG sales to China. Since resuming in 2020, Chinese imports of US gas have surged, averaging more than 400,000 tons per month.

In January, US Secretary of State Marco Rubio suggested using LNG as leverage in trade negotiations.

However, China’s current stance poses challenges for US developers seeking contracts to initiate new projects.

China’s imports of LNG have, however, fallen to their lowest point since the beginning of the Covid-19 pandemic in early 2020.

This decrease is due to subdued demand and elevated prices in Europe, which have diverted shipments away from China.

“China halts US LNG imports due to tariffs, shifts to alternative sources” was originally created and published by Offshore Technology, a GlobalData owned brand.

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