China interrupts US imports from the USA
Chinese Liquefied Natural Gas Imports (LNG) from the USA have been completely interrupted for more than ten weeks. The trade war between Beijing and Washington extended to energy cooperation.
Since a 69,000 tonne tanker ship from Corpus Christi, Texas, it arrived in the province of Fujian, in southeastern China, on February 6, no further shipments were recorded between the two countries. The analysis is from the Financial Times newspaper to data from maritime transport.
A second tank ship was redirected to Bangladesh after not having reached the destination, just before China imposed a 15% tariff on US gas on 10 February. Since then, customs rates have increased to 49%, making US LNG economically unfeasible for Chinese buyers.
During the first term of President Donald Trump (2017–2021), China’s US LNG imports had already been suspended for over a year, in a period equally marked by commercial tensions between the two countries.
The current impasse may have long -range implications by reinforcing energy ties between Beijing and Moscow and raising doubts about the viability of the vast expansion of LNG terminals in the United States and Mexico, projects evaluated at thousands of dollars.
Since the invasion of Ukraine, China has imported only a relatively low percentage of its US LNG, with several Chinese companies to resell gas to Europe, taking advantage of higher profit margins.
Last year, only 6% of Chinese LNG imports originated in the US against a peak of 11% in 2021.
Companies such as Petrochina and Sinopec previously signed 13 long-term contracts with US terminals, some of which are valid until 2049. These agreements were fundamental to enable large LNG projects in the US.
Zhang Hanhui, China’s ambassador in Moscow, said earlier this week that China should increase its Russian LNG imports.
« I know for sure that there are many buyers. So many are asking the embassy help to establish contacts with Russian suppliers, which I think there will definitely be more imports, » said the diplomat.
Russia is currently the third largest LNG supplier to China after Australia and Qatar. The two countries are also negotiating the construction of a new pipeline, the power of Siberia 2.
