The last shipment of American LNG arrived in the Chinese province of Fujian on February 6, after which supplies were completely stopped. According to the Financial Times, some shipments were even diverted to other countries, including Bangladesh, to avoid new tariff restrictions. This decision was a direct result of escalating trade disputes between the world's two largest economies.
"The embargo has actually affected global LNG flows," said Richard Bronze, an analyst at Energy Aspects. According to his forecast, the total demand for LNG in Asia may decrease by 5-10 million tons, which will potentially lead to lower gas prices in the European region. Such a redistribution of supplies can affect the market not only in the short term, but also in the long term.
Despite the existence of 13 long-term contracts between Chinese companies and American suppliers concluded before 2049, experts do not expect a resumption of supplies in the near future. Anne-Sophie Corbeau from the Center for Global Energy Policy at Columbia University stressed that Chinese companies are unlikely to re-sign agreements with the United States, given the current political and economic situation.
