Four US LNG vessels sailing to China after Trump-Xi summit

• Four vessels from Cheniere Energy's Sabine Pass and Venture Global's Plaquemines facilities departed between May 5-18, expected to arrive at China's Tianjin port June 15-28
• Iran's closure of the Strait of Hormuz knocked out approximately 10 billion cubic feet per day (20% of global LNG supply), pushing European gas prices to $17/mmBtu and Asian prices to $19/mmBtu
• U.S. Henry Hub gas trades near $3/mmBtu, significantly cheaper than Europe and Asia, but China's retaliatory 25% tariff remains the biggest barrier to U.S.-China LNG trade according to S&P Global

Summary: Four US LNG Vessels Sailing to China After Trump-Xi Summit

Four liquefied natural gas (LNG) vessels are en route from the United States to China, expected to arrive in June—marking the first direct U.S.-to-China LNG shipments during President Trump's second term. The development follows the Trump-Xi summit last week, where Trump indicated China's interest in purchasing U.S. oil and LNG.

Key Details:

• Four vessels departed from Louisiana facilities between May 5-18: one from Cheniere Energy's Sabine Pass plant and three from Venture Global's Plaquemines facility
• All vessels are scheduled to dock at China's Tianjin port between June 15-28
• Cheniere and Venture Global are the first and second-largest U.S. LNG producers, respectively

Trade Barriers:

Despite the shipments, China maintains a 25% tariff on U.S. LNG—retaliation for earlier U.S. tariffs on Chinese goods. According to S&P Global, this remains the primary obstacle to reviving bilateral LNG trade between the world's biggest gas importer (China) and biggest producer/exporter (U.S.).

Market Dynamics:

Global gas prices have surged following Iran's conflict response, which shut the Strait of Hormuz and damaged Qatar's LNG facilities, eliminating approximately 10 billion cubic feet per day (20% of global LNG supply).

Current price disparities are significant:

• European TTF benchmark: ~$17/mmBtu (six-week high)
• Asian JKM benchmark: ~$19/mmBtu (four-week high)
• U.S. Henry Hub: ~$3/mmBtu (seven-week high)

The substantial price differential between cheap U.S. gas and elevated Asian/European prices may incentivize Chinese buyers despite the 25% tariff, potentially signaling a thaw in U.S.-China energy trade relations.