- Chinese LNG importers are rerouting U.S. cargoes to Europe due to rising tariffs and weak domestic demand.
- Sinopec and CNOOC have begun reselling long-term U.S. LNG supply deals, including April cargoes.
- European markets offer better profit margins, with spot prices lower than Asia and closer shipping routes.
Chinese LNG importers continue to reroute U.S.-sourced cargoes to Europe and other markets as tariffs rise and domestic demand falls.
Beijing imposed a 15% tariff on U.S. LNG in February. Beginning on April 10, China will extend duties to all U.S. goods after Washington raised tariffs on Chinese imports by 34%.
China, the world’s top LNG buyer, bought no U.S. LNG in March, according to Kpler and LSEG data. In 2024, U.S. shipments accounted for 5% of China’s LNG imports.
Chinese firms have responded by offloading U.S. LNG cargoes into more profitable markets. Europe now absorbs most of these diverted shipments.
“Importers will stop experimenting and fully commit to reselling U.S. LNG,” said ICIS analyst Alex Siow. “The tariff gap leaves them no choice.”
Laura Page, head of LNG insights at Kpler, reported that Chinese buyers already resold 70% of 2024’s total U.S. volumes in early 2025. She predicted more resales in the coming months.
Venture Global’s Calcasieu Pass LNG terminal in Louisiana recently launched commercial operations. The new output supports several long-term Chinese contracts.
Sinopec, a Chinese state-run firm, signed a deal to buy 1 million metric tons of LNG annually from Venture Global. A source confirmed that Sinopec sold its April cargoes to other buyers.
CNOOC, another state energy company, plans to begin a five-year contract this month. The deal includes 0.5 million tons of LNG each year.
ICIS said Sinochem, Foran Energy, and PetroChina redirected their U.S.-sourced LNG. These companies seek better profits outside the Chinese market.
Four Chinese traders said importers moved cargoes to Europe and other Asian countries after tariffs made domestic sales uneconomical.
“Imports stopped as soon as the 15% tariff took effect,” said a trader at a state-owned firm. “The new tariffs made the math even worse.”
Most Chinese buyers operate under Free-On-Board (FOB) contracts. These terms let them resell cargoes after loading. “We sent most U.S. LNG to Europe,” the trader added. “It’s closer and pays better.”
On April 4, LNG in Europe sold for $12 per million British thermal units (mmBtu), while Asia saw slightly higher prices at $13/mmBtu. Despite that, Chinese buyers pushed for cheaper deals.
“Any price above the low $10s leads to losses,” said a second Chinese trader. City-gas distributors aim for $8–9/mmBtu for spot cargoes.
According to customs data, China’s LNG imports fell to 4.5 million metric tons in February—the lowest level since April 2022.
Buyers now prefer reselling to Europe, where shorter distances and better prices offer an advantage. Chinese firms will likely avoid U.S. LNG altogether unless the trade dispute cools.