China Dumps First US LNG Cargo Due to Tariff Fears

Chinese buyers who received the first US LNG cargo in over a year are planning to resell it on another market due to higher prices elsewhere and to avoid paying a 25% tariff. The cargo was offloaded into bonded storage at the Yangpu port in south China, rather than being actually imported into the country.

The buyer had purchased the gas with the intention of reselling it for profit, according to sources familiar with the plans. An empty tanker has recently docked at Yangpu, likely to load the gas for re-export.

This move suggests that China is not willing to pay the 25% tariff to resume importing US LNG. Despite a Middle East war that has been disrupting Qatari and UAE exports, China's LNG imports have rebounded in recent weeks due to higher seasonal demand.