China is no longer buying LNG from America...
China has stopped buying liquefied natural gas (LNG) from America for 60 days. This is the first time in the last five years that there has been such a long gap in the import of LNG. The tension between the two countries regarding tariffs is at its peak. Due to this, buyers of LNG in china are importing it from other countries. According to Kpler, an analytics firm that tracks ship data, currently no US shipment is going towards China.
LNG trade between America and china is zero
According to a Bloomberg report, during the first term of US President Donald Trump, china did not take any shipment from America for about 400 days till april 2020.
Wei Xiong, head of Chinese gas research at energy consultancy firm Rystad Energy, said, "LNG trade between china and the US is expected to continue until the end of 2025 as china has increased the tariff on US LNG from 15 percent to 49 percent in response to Trump's high tariffs." Meanwhile, LNG is being supplied to china from Russia. After australia and Qatar, russia has become China's largest LNG supplier.
Many big deals between the two on the purchase of LNG
Let us tell you that in response to Trump's tariff, china imposed a 15 percent tariff on US LNG shipments from february 10, which was increased to 49 percent last week. Due to this, Chinese LNG traders have to get shipments from elsewhere instead of America.
Where in the year 2021, America's contribution to China's LNG imports was 11 percent. At the same time, it came down to 6 percent in 2024. There are 13 deals between many big Chinese energy companies like PetroChina and Sinopec and American terminals for the purchase of LNG, which have a duration till 2049. However, due to tariffs and rising inflation, many of them want to reconsider these agreements.
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