Significant Thaw in U.S.-China Energy Trade

In a significant thaw in U.S.-China energy trade, four American liquefied natural gas (LNG) vessels are now sailing toward China, the first such direct shipments during President Donald Trump’s second term. The tankers, including Cheniere Energy’s Umm Al Hanaya from Sabine Pass and three from Venture Global’s Plaquemines facility in Louisiana, departed between May 5 and 18.

They are expected to reach Tianjin port in mid-to-late June. The move follows last week’s Trump-Xi summit in Beijing, where Trump highlighted China’s renewed interest in American LNG, oil, and other goods. Despite China’s 25% tariff on U.S. LNG still in place, surging global gas prices driven by Middle East tensions have made these cargoes commercially attractive once again.

Kpler data shows US crude and condensate exports have surged to a new record high this week, reaching 6.1 million barrels per day. This weekly surge should push the full monthly average above 5 mb/d, another record. The United States is now the world’s largest oil producer and the world’s largest oil exporter.