WPB: China has not received a single liquefied natural gas (LNG) shipment from the United States in the past 40 days, and currently, no LNG carriers are on route to the country.
Bloomberg, citing data collected from ship-tracking information providers and Kepler, reported that China has halted its LNG purchases from the U.S.
The suspension of purchases is a result of the tariff war initiated by former U.S. President Donald Trump, who imposed an additional 10% tariff on all Chinese imports upon taking office. In response, China imposed a 15% tariff on U.S. LNG imports, along with a lower tariff on U.S. crude oil imports.
According to Bloomberg, Chinese LNG buyers with long-term contracts with U.S. producers have begun reselling their shipments to Europe in response to these tariffs. Additionally, Chinese traders are uncertain about committing to new long-term purchase agreements with the U.S. and are instead seeking long-term contracts with gas producers in the Middle East and Asia-Pacific.
The American news outlet highlighted a new 15-year contract between China Resources Gas International and Woodside Energy, marking the first long-term agreement between a Chinese and an Australian company in years.
According to Oil Price, this situation is generally in Europe’s favor, as the arrival of spring signals the end of the high gas demand season. However, demand in the region will remain elevated for some time, as gas reserves need to be replenished. In fact, Kepler predicts that European gas demand will increase in the coming weeks since the continent is emerging from winter with significantly lower reserves.
By WPB
Bitumen, Oil, Gas, LNG
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