China Rejects U.S. LNG Cargo to Avoid 25% Tariff

The cargo, sourced from Venture Global’s Plaquemines LNG terminal in Louisiana, marks the first U.S. delivery to China in over a year. Despite the high-profile arrival, the gas was never cleared for domestic import. By keeping the fuel in bonded storage, the buyers avoided a 25% tariff that would have rendered the deal unprofitable compared to prevailing rates in other international markets. Vessel-tracking data confirms that an empty tanker has docked at Yangpu, positioning itself to reload the shipment for re-export.

This decision highlights the limits of China’s demand for American gas, even as the country ramps up overall energy intake to meet peak summer power requirements. Recent official data shows that China’s total LNG imports rose 8.3% in June to 5.68 million tons, marking a steady recovery from an eight-year low recorded earlier this spring. While Chinese state importers are actively seeking to diversify their supply chains—specifically looking for sources that bypass the Persian Gulf—they remain unwilling to absorb the additional overhead associated with U.S. shipments.