First Direct U.S LNG Cargo Since Trade Disputes Reach China & May Be Re-Exported

A shipment of U.S LNG arrived at a Chinese Port for the first time since trade disputes and tariffs were implemented, halting direct trade exchanges between Washington and Beijing.

However, the cargo might not enter China since the terminal has bonded storage facilities, enabling its re-export without import duties.

The LNG was loaded from Venture Global LNG’s Plaquemine Export Plant in Louisiana.

The Al Fat’h tanker, controlled by QatarEnergy, reached China’s PipeChina Yangpu terminal in Hainan on July 15 to 16, loaded with the cargo, which it brought on a spot basis.

This marks the first time that U.S LNG has reached China since Mu Lan unloaded at Zhangzhou in February 2025.

Yangpu Terminal has bonded LNG storage tanks, which are China’s first such facilities approved for bonded operation, enabling the cargo to be stored, traded and re-exported without needing to pay the Chinese import duties.

There are other bonded storage sites for LNG in China, including in Tianjin and Zhoushan.

The cargo can be resold for portfolio optimisation, or if domestic supply is short, it can be imported into China after clearing customs.

China was once a principal buyer of U.S LNG, with Chinese companies signing long-term contracts with U.S suppliers; however, since tariffs made such exchanges uneconomic, Chinese importers began diverting the U.S cargo elsewhere.

Beijing also suspended a 24% extra tariff on U.S goods for a year, but retained the base tariff of 10%, which was imposed in November.

However, tariffs on U.S energy commodities, including a 15% levy on LNG, are in place.

United States is currently the biggest exporter of LNG in the world, exporting 109 million tonnes of the fuel in 2025, according to industry sources.