China stops US LNG imports due to trade tensions

China has not imported liquefied natural gas (LNG) from the United States for 40 days. This is the longest break in imports since June 2023. Traders are avoiding US shipments due to tariffs set by Beijing on American LNG. China imposed a 15% tariff on US LNG starting February 10, in response to US tariffs on Chinese exports. As a result, Chinese companies are reselling their US LNG contracts to Europe. They are also hesitant to make new deals with US suppliers, instead choosing to buy LNG from countries like Australia and those in the Asia-Pacific region. Recently, China Resources Gas International signed a 15-year deal with Australia's Woodside Energy, marking the first such agreement between Chinese and Australian companies in years. This deal follows improved relations between China and Australia, which had been strained. To enhance its energy security, China is increasing its own gas production, which has seen a 3.7% rise year-on-year in early 2025. Additionally, there are cheaper energy alternatives available, such as coal and renewable energy, which are reducing China's demand for imported gas. Previously, the trade tensions between the US and China halted LNG sales from the US to China. Since resuming in 2020, US LNG imports have grown, averaging more than 400,000 tons a month. However, the ongoing trade disputes create uncertainty for US developers seeking to secure contracts for new projects.