China Turns Away from U.S. Gas as Russia Fills the Gap
Liquefied natural gas from the United States has vanished from Chinese ports, signaling a fresh rupture in energy ties between the world’s two largest economies.
Since early February, not a single U.S. LNG shipment has reached China, with elevated tariffs now pricing American cargoes out of the market.
The disruption follows Beijing’s hike in import duties on U.S. LNG—now standing at 49%—which took effect after a ship narrowly made port in Fujian province. Another vessel, facing the new tariff deadline, diverted to Bangladesh instead. The tariff shift has effectively sidelined American LNG, repeating a pattern last seen during the U.S.-China trade standoff under Donald Trump.
The implications stretch beyond shipping routes. Developers of new export terminals in the Gulf of Mexico had counted on long-term Chinese contracts to secure financing. While firms like PetroChina and Sinopec hold multi-decade agreements, including some stretching to 2049, the current market climate has frozen those deals in practice. Some U.S. suppliers are now seeking to renegotiate terms amid rising inflation and reduced demand from China.
With access to American LNG restricted, China is deepening energy cooperation with Russia. The two countries are exploring expansion through the Power of Siberia 2 pipeline and ramping up liquefied gas trade. Demand for Russian LNG is reportedly growing, and Chinese buyers are increasingly turning to their embassy in Moscow to establish new supplier relationships.
Meanwhile, the global ripple effect is beginning to show. Analysts anticipate that as Chinese demand shifts away from the U.S. and overall Asian LNG consumption cools, excess supply could put downward pressure on European prices.
Though China historically sourced a relatively small share of LNG from the U.S., the current halt underscores how quickly geopolitical tensions can redraw global energy flows. With no signs of near-term resolution, the absence of U.S. gas in China may last far longer than the last time—and this time, the consequences could be more permanent.
Editorial Team
Reporter at Coindoo
