China has suspended all liquified natural gas (LNG) purchases from the United States, according to a post by WatcherGuru on X (formerly Twitter).
The decision follows escalating trade tensions between the two nations, with Chinese officials citing economic sovereignty concerns and the need to diversify energy sources.
The suspension is linked to recent U.S. tariffs on Chinese green technology exports, including electric vehicles and solar panels, per Reuters. Analysts note the move could disrupt global LNG markets, as China accounted for 12% of U.S. LNG exports in 2023, based on data from the U.S. Energy Information Administration (EIA).
U.S. LNG producers, such as Cheniere Energy and Venture Global LNG, face immediate financial repercussions, with stock prices dropping 6-8% in pre-market trading, reported Bloomberg. Asian and European buyers are reportedly exploring alternative suppliers, including Qatar and Australia, to offset potential shortages.
Chinese state-owned energy firms have accelerated negotiations with Russian gas suppliers, according to the South China Morning Post. The shift aligns with China’s strategy to strengthen energy partnerships with non-Western nations, including recent deals with Uzbekistan and Kazakhstan.
The Biden administration has not yet issued an official response. Energy experts warn the halt could inflate global LNG prices, already strained by the EU’s reduced reliance on Russian gas, per the International Energy Agency (IEA).
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