Commodities
Market Chatter: US LNG Cargoes Sail to China for 1st Direct Deliveries Since February 2025
Three US liquefied natural gas cargoes are sailing to China, marking the first direct shipments between the countries in more than a year, according to a Reuters analysis on Tuesday, citing LSEG data.LSEG shipping data showed the vessels departed LNG export terminals in Louisiana last week and are scheduled to reach Tianjin between June 15 and June 20.The planned deliveries come as US President Donald Trump prepares to travel to Beijing this week for talks with Chinese President Xi Jinping.Since Trump returned to office in January 2025, no LNG vessel has shipped directly from the US to China because trade tensions pushed buyers to redirect cargoes elsewhere, the analysis said.Chinese importers holding contracts with US LNG producers sold many shipments to other countries over the past year as stronger global prices created profitable resale opportunities.The analysis cited EBW Analytics, which said China has relied more heavily on pipeline gas supplies from Russia and Central Asia rather than increasing purchases of US LNG.Columbia University researcher Erica Downs said lower inventories could encourage China to buy more LNG from the US, although cheaper pipeline imports and domestic gas production remain more attractive options."Beijing likely views the United States as an unreliable trade partner," Downs said.Umm Al Hanaya departed Cheniere Energy's (LNG) Sabine Pass export terminal on May 5, while Al Sailiya and Id'Asah left Venture Global's Plaquemines facility on May 8, the analysis added, citing LSEG data.If the vessels reach China, they would mark the first direct US LNG shipments to arrive since February 2025, when four cargoes reached Chinese ports before President Donald Trump began his second term.The US Department of Energy said two LNG vessels delivered small portions of US cargoes to China in 2025 and 2026 after unloading most of their shipments in Bangladesh.US DOE added 64 LNG vessels delivered cargoes to China from the US in 2024, compared with 52 in 2023, 30 in 2022 and a record 131 shipments in 2021, according to the analysis.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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