Chinese buyers are increasingly re-selling U.S.-sourced liquefied natural gas (LNG) cargoes instead of importing them directly, as a new wave of tit-for-tat tariffs between Beijing and Washington makes U.S. LNG imports financially unviable. The trend, already visible in early 2025, is poised to intensify as new long-term supply contracts commence and domestic demand remains sluggish, according to traders and analysts.

In February 2025, China imposed a 15% tariff on U.S. LNG, and by April 10, retaliatory levies on all U.S. goods will take effect in response to U.S. President Donald Trump’s move to add 34% tariffs on Chinese imports.

No U.S. LNG Imports in March

The impact is already showing: China imported zero U.S. LNG cargoes in March, data from Kpler and LSEG confirms. U.S. LNG made up around 5% of China's imports in 2024, but that figure is now poised to drop sharply.

“Chinese LNG importers will probably shift from thinking: ‘We should attempt to re-sell U.S. LNG into Europe’ to ‘We must re-sell all U.S. LNG,’” said Alex Siow, ICIS analyst.

Surge in Resales to Europe

Resales of U.S. LNG into European markets have surged. Chinese offtakers have already re-sold 70% of last year’s total volume in just the first few months of 2025, according to Laura Page, Head of Kpler LNG Insight. More is expected as Venture Global’s Calcasieu Pass LNG terminal begins commercial operations, and European markets offer better arbitrage opportunities than Asia.

“FOB-based contracts make it easier for Chinese firms to re-route cargoes, especially when spot prices in Asia are high and demand is weak,” said a trader at a Chinese state-owned company.

Major Contracts Begin, But Cargoes Are Being Flipped

Two state-owned giants, Sinopec and CNOOC, are beginning major contracts with Venture Global this April:

  • Sinopec: 1 million metric tons/year
  • CNOOC: 0.5 million metric tons/year (five-year deal)

Yet both firms are already re-selling their April cargoes, with Europe being the most common destination, sources say.

Demand Down, Prices Too High

While Chinese buyers offload their U.S. LNG cargoes abroad, domestic spot demand is also weakening:

  • China’s February LNG imports were just 4.5 million metric tons, the lowest since April 2022.
  • Asian spot prices remain high at $13.00/mmBtu (April 4), versus $12/mmBtu in Europe.
  • Tier-two Chinese buyers (like city-gas distributors) are only willing to pay $8–9/mmBtu, making imports above $10/mmBtu “unsafe” or loss-making, traders say.

Strategic Repositioning

This trend reflects more than just short-term market reaction—it signals a strategic shift in how Chinese companies handle U.S. LNG obligations amid geopolitical and economic headwinds. With tariffs eroding profitability and local demand dropping, resale strategies into Europe or other Asian markets are becoming the new norm.

As long as trade tensions persist and domestic margins remain thin, don’t expect Chinese LNG importers to bring U.S. cargoes home anytime soon.