LNG gets political

From China blocking US LNG to Trump demanding that various countries import more of the fuel, the politicisation of LNG is on the rise

The severing of LNG trade between the world’s largest exporter, the US, and its top importer, China, has not triggered any major upheaval in global flows of the fuel, largely owing to the limited volumes involved. China imported just 4.2mt of US LNG in 2024, according to its customs data—only around 5% of its total imports and a similarly small share of US exports. In short, neither country is particularly reliant on the other for energy security, despite their outsized presence in the global LNG market. Nonetheless, the breakdown is significant as it highlights a growing shift in LNG trade. A market that usually offers versatile supply and is commercially driven, is becoming more fragmented