Chinese Buyers Are Redirecting Their Shipments from the US to Other Markets in Asia and Europe

China’s decision to impose retaliatory tariffs on imports of liquefied natural gas (LNG) from the US will accelerate the decoupling between the world’s largest buyer and seller of the super-cooled fuel.

Beijing announced a 15% tariff on US gas minutes after President Donald Trump imposed tariffs on goods and commodities imported from China. This comes after US shipments accounted for about 6% of China’s total LNG imports last year.

The move is likely to prompt Chinese buyers who have long-term contracts with US projects to resell their shipments to importers in other countries. The country’s LNG importers continue to export a large portion of US shipments to other markets, such as Europe, where prices are more attractive.

Chinese LNG buyers are discussing with counterparts in Asia and Europe swapping more U.S. exports for cargoes from other countries, according to traders who asked not to be identified because they were not authorized to speak to the media.