China halts all US LNG imports amid trade war

China has dramatically ceased all imports of US liquefied natural gas (LNG) for over ten weeks, reflecting the deepening trade tensions between China and the United States. This escalation can be traced back to retaliatory tariffs imposed by China, which have rendered American natural gas financially unviable in the Chinese market. Initially, US LNG exports to China had been growing, but the imposition of tariffs reaching as high as 145% has made US products far too expensive for Chinese buyers. The 15% tariff on US LNG, imposed on February 10, was subsequently raised to 49%, effectively pricing them out of the market for the foreseeable future. The last import was noted to be a 69,000-ton LNG tanker that arrived in February from Corpus Christi, Texas. Since then, no new shipments have been recorded, indicating a significant breakdown in energy trade between the two nations. China’s PetroChina and Sinopec had secured 13 long-term contracts for US LNG, some extending until 2049. However, as the economic landscape evolves, developers are reported to be seeking renegotiations on contract terms due to rising inflation and the incurred tariff costs. This halt in US LNG imports coincides with a notable decrease in China's purchases of American crude oil, which have dropped by 90% amid ongoing trade disputes. The standoff has potential long-term consequences, as Chinese energy importers are unlikely to pursue further contracts with US suppliers. Meanwhile, the rift could drive China to form closer energy ties with Russia, which has been bolstering its status as one of China’s key LNG suppliers. Reports indicate increasing interest from Chinese buyers searching for contacts with Russian suppliers, amid discussions of the proposed Power of Siberia-2 gas pipeline, although details of this project remain unfinalized. This situation raises concerns over the future growth of US LNG terminal expansions, with potential shifts in import dependencies now favoring Russian gas supplies over US resources.