Chinese liquefied natural gas (LNG) importers are offloading U.S.-sourced cargoes to other markets as rising tariffs and sluggish domestic demand make American gas increasingly uncompetitive, traders and analysts said.
The trend is expected to accelerate this month, with long-term supply contracts from U.S. exporter Venture Global kicking in and Beijing’s latest round of retaliatory tariffs set to take effect on April 10.
In response to U.S. President Donald Trump’s imposition of 34% tariffs on Chinese goods, China has slapped levies on all U.S. imports, compounding an earlier 15% duty on U.S. LNG introduced in February.
As a result, China—formerly one of the top buyers of U.S. LNG—imported no American cargoes in March, according to data from Kpler and LSEG. Last year, the U.S. accounted for roughly 5% of China’s total LNG imports.
“Chinese LNG importers are moving from trying to resell some U.S. cargoes to offloading all of them,” said Alex Siow, an analyst at ICIS. “The widening tariff gap is making direct imports unviable.”
So far this year, Chinese firms have already resold nearly 70% as many U.S. LNG cargoes to Europe as they did in all of 2024, according to Kpler’s head of LNG insights, Laura Page. She expects the volume of resales to surge in the months ahead, especially as arbitrage opportunities favor European markets over Asia.
State-run energy giants Sinopec and CNOOC are expected to begin lifting LNG from Venture Global’s Calcasieu Pass project this month under multi-year supply agreements. Sources say Sinopec has already resold its April cargoes, while CNOOC is also due to start taking 0.5 million tons annually under a five-year deal.
Other major Chinese importers—Sinochem, Foran Energy, and PetroChina—are also redirecting U.S. cargoes to Europe or other parts of Asia, traders said.
“The 15% tariff already halted imports, and the new duties will make them even less appealing,” said one trader at a state-owned firm. “Most FOB cargoes are now going to Europe, where the math works better.”
Spot LNG prices remain relatively high in Asia—$13.00 per million British thermal units (mmBtu) as of April 4—while European delivered prices are around $12/mmBtu. China’s second-tier buyers, mainly city gas distributors, are unwilling to pay more than $8–9/mmBtu, traders added.
In February, China imported just 4.5 million metric tons of LNG—the lowest monthly volume since April 2022, according to customs data.
“Any landed price above the low $10s per mmBtu is considered a financial risk—likely to incur losses,” another LNG trader said.
