April 8, 2025 : China Resells U.S. LNG
Amid Tariff Row
China Resells U.S. LNG Amid Tariff Row - Oil Price
NextDecade and Aramco Execute 1.2 MTPA LNG Sale and Purchase Agreement from Rio Grande LNG Train 4 - Press Release
South Korea trade minister says considering measures to boost US imports - Reuters
Kitimat firing up as LNG joins aluminum among the city’s exports - Western Investor
Rob Shaw: BC NDP urges Poilievre to do his LNG homework next time - Business in Vancouver
First Gen receives 7th LNG delivery - Business Mirror
Mexico considers increasing fracking as Donald Trump sparks fear over US gas reliance - Financial Times (Subscription)
Shell Cuts LNG Production Guidance for Q1 - Oil Price
Chinese LNG buyers resell US cargoes as tariffs bite - Reuters
Focus on China : Recent News
Key Developments
US-China Tariffs Shut Down LNG Trade
China imposed a 15% tariff on US LNG in February 2025, followed by an additional 34% levy effective April 10, 2025, in retaliation to US tariffs.
No US LNG imports reached China in March 2025, with a 60-day import hiatus as of April 6, 2025—the longest since the last trade war.
Chinese buyers, including Sinopec and CNOOC, are reselling US cargoes (e.g., from Venture Global’s Calcasieu Pass) to Europe and Asia due to unviable import costs.
US LNG accounted for 5% of China’s LNG imports in 2024.
Read This: Reuters
South Korea Eyes Increased US LNG Imports
South Korea’s trade minister is considering boosting US imports, including LNG, to counter US tariffs of 25% on South Korean goods.
This follows negotiations with the US to mitigate tariff impacts on its export-driven economy.
Read This: Reuters
LNG Canada Nears Operational Launch
The LNG Canada project in Kitimat, BC—a joint venture involving Shell, Petronas, Mitsubishi, PetroChina, and Korea Gas Corp.—received its first import cargo for testing on April 2, 2025.
First exports are expected by July 2025, with an initial capacity of 14 million tonnes per annum (mtpa).
Read This: Western Investor
China Redirects US LNG to Europe and Asia
Weak domestic demand and high tariffs have prompted Chinese buyers to divert US LNG to Europe (70% of 2024 resale volumes already redirected) and other Asian markets.
Supports European storage replenishment ahead of winter.
Read This: Oil Price
Trade War Threatens Long-Term US LNG Contracts
Analysts warn that the 49% total tariff on US LNG could deter Chinese buyers from signing long-term contracts, impacting US export terminal development.
Read This: E&E News
Petrochemical Trade Faces Collateral Damage
The trade war jeopardizes US exports of LPG and ethane to China, which accounted for 62% of China’s 1.4 million barrels per day of these feedstocks in 2024.
Read This: Reuters
Asian Spot LNG Prices Languish at 6-Month Low
Prices held at $13.00/mmBtu on April 4, 2025, driven down by tariff-induced market uncertainty.
China’s tier-two buyers seek spot cargoes at $8-9/mmBtu, well below current levels.
Read This: Reuters
Global Response to US Tariffs Opens Opportunities
Countries like Japan, South Korea, and Vietnam are pledging increased US LNG imports to offset trade imbalances and avoid harsher US tariffs.
Vietnam cut LNG import tariffs from 5% to 2%, aiming to boost US volumes (330,000 tons imported in 2024).
Read These: Financial Times | Oil Price
European Storage Incentives Shape Demand
Italy introduced incentives on April 1, 2025, to meet the EU’s 90% gas storage target by November 1, 2025, potentially increasing demand for redirected US LNG.
Read This: Reuters
US Gas Prices Face Tariff-Induced Volatility
US LNG exports (12 bcf/day in 2024) could see mixed impacts: increased demand from some nations, retaliation from others (e.g., China).
This may affect domestic gas availability and prices.
Read This: Reuters
China’s Shandong Order Group Secures JKM-Linked Deal
Shandong Order Group signed a 3-year, JKM-linked deal with Glencore for 3 cargoes annually. .
Read This: S&P Global