Washington Seeks LNG Deal with China Amid Global Shortages

Washington is eager to finalize a deal for liquefied natural gas (LNG) exports to China, which could revive a $6 billion-a-year trade. The US has been blocked from exporting LNG to China since Q1 2025 due to a 15% Chinese tariff.

In March, Iranian missiles destroyed 17% of Qatar's LNG export capacity, forcing China to seek alternative suppliers. According to Banchero Costa data, in the first seven months of this year, Australia supplied 36% of China's LNG imports, followed by Southeast Asia at 20%, Russia at 12%, and Canada at 4%. The US made up a mere 0.2%.