China’s imports of U.S. liquefied natural gas (LNG) have ground to a complete halt, marking a significant escalation in the ongoing Sino-American trade tensions and exposing new fractures in the global energy market.
According to shipping data, there have been no LNG shipments from the U.S. to China for over 10 weeks, following Beijing’s imposition of steep tariffs on American gas. The last delivery—a 69,000-tonne tanker from Corpus Christi, Texas—arrived in Fujian province on February 6. A second shipment en route was diverted to Bangladesh after it failed to dock before the new 15% tariff came into effect on February 10. That levy has since been hiked to 49%, effectively pricing U.S. LNG out of the Chinese market.
The standstill is a stark reminder of the volatility in U.S.-China relations and how trade disputes are now reshaping strategic sectors like energy. As Financial Times reports, the freeze recalls a similar blockade during Donald Trump’s presidency, but experts warn that this time the consequences could be more enduring.
“There will be long-term consequences,” said Anne-Sophie Corbeau, gas specialist at Columbia University’s Center on Global Energy Policy. “I do not think Chinese LNG importers will ever contract any new U.S. LNG.”
The timing of the suspension is especially problematic for American LNG developers, who have relied heavily on long-term contracts with Chinese energy giants such as PetroChina and Sinopec to finance their multibillion-dollar export terminals in the U.S. and Mexico. Many of those deals run through 2049, but are now under pressure amid rising inflation, shifting geopolitics, and punitive tariffs.
Despite those agreements, China has significantly reduced its dependence on U.S. LNG since Russia’s invasion of Ukraine. In 2023, just 6% of its LNG imports came from the U.S., down from 11% in 2021. Chinese buyers have often preferred to resell U.S. cargoes to Europe for profit rather than bring them home.
This latest rupture is expected to further entrench China’s pivot toward Russian energy. Chinese Ambassador to Russia Zhang Hanhui confirmed that demand for Russian LNG is surging: “So many buyers are asking the embassy to help establish contacts with Russian suppliers,” he said. “I think there will definitely be more [imports].”
Russia has already become China’s third-largest LNG supplier, after Australia and Qatar. Negotiations over a new pipeline—Power of Siberia 2—could deepen that relationship, reinforcing Moscow and Beijing’s shared interest in challenging U.S.-led energy supply chains.
Energy analysts say the implications of the standoff will ripple far beyond Asia. “With tariffs rising to the level where they are an effective embargo, we will see a reshuffling of trade flows,” said Richard Bronze of consultancy Energy Aspects. “We also expect Asia demand to fall by 5mn to 10mn tonnes as a whole. That should bring gas prices down a bit in Europe.”
Still, the outlook for any short-term thaw in U.S.-China LNG trade remains bleak. “The last time this happened, trade only resumed after the Chinese government issued waivers,” said Gillian Boccara, analyst at Kpler. “But that was during a period of booming gas demand. Now, with slower economic growth, China can afford to walk away.”
As global energy markets continue to be redrawn by geopolitical tensions, the breakdown in U.S.-China LNG cooperation is yet another reminder that energy security is now tightly intertwined with diplomatic friction — and likely to remain so for the foreseeable future.
