Key facts
- Chinese buyers plan to resell the first U.S. LNG cargo received in over a year.
- The cargo was bought from Venture Global's Plaquemines LNG export terminal.
- The resale is intended to profit from higher prices elsewhere and avoid a 25% tariff.
- The gas was offloaded into bonded storage and not imported into China.
- China's LNG imports increased for the second consecutive month in June.
Chinese buyers who received the first U.S. liquefied natural gas (LNG) cargo in over a year are planning to resell it on another market rather than import it into China. Sources familiar with the plans told Bloomberg that the intention is to profit from higher prices elsewhere and avoid paying a 25% tariff.
The cargo, originating from Venture Global's Plaquemines LNG export terminal in Louisiana, arrived at the Yangpu port in south China earlier this month. However, the gas was placed into bonded storage without formal import into China, as the buyer sought to circumvent the tariff.