China Prolongs Its Ban on U.S. LNG Imports.

China has not imported liquefied natural gas (LNG) from the U.S. since early February, with the last shipment departing on February 6, according to data cited by Nikkei. The tariffs imposed by China on U.S. goods, including energy products, along with the ongoing trade conflict between the two largest economies, may have long-term effects on new U.S. LNG export projects' ability to secure long-term agreements, analysts caution.

The U.S. was never a significant LNG supplier to China, and the imposition of retaliatory tariffs halted imports entirely. Following this, Chinese buyers with long-term contracts began reselling U.S. cargos to Europe, as reported by Bloomberg in March. Additionally, Chinese traders have become less interested in future long-term agreements with U.S. suppliers, opting instead for deals with producers in the Middle East and Asia Pacific.

Recently, a 15-year LNG supply agreement was struck with Emirati Adnoc, amounting to 1 million metric tons annually, marking the largest LNG contract for Chinese company ENN Natural Gas. ENN stated that this agreement will enhance energy supply security and diversify sourcing.

Overall, the outlook for Chinese LNG imports appears negative, with BloombergNEF predicting last month that high gas inventories will reduce demand this year, resulting in the first annual decline in LNG imports since 2022.

The tariff situation is also impacting the U.S. LNG industry in another way, as President Trump has imposed tariffs on Chinese-built vessels docking at U.S. ports in an effort to encourage U.S. energy companies to use domestically built ships, of which there are currently none available.