Australia, Malaysia LNG benefit from U.S.-China trade war

By Fauziah Marzuki, BloombergNEF

Australia, Malaysia LNG share to China totaled 72% in May

Australia, China's largest LNG supplier, stands to gain the most from the escalation of U.S.-China trade tensions. Australian LNG comprised 52% of Chinese imports in May, up from 43% last year. Malaysian LNG is also benefiting from the absence of U.S. LNG in China's supply mix, rising to 20% in May from an average of 10% in 2018.

Chinese buyers currently hold supply contracts with four Australian plants -- APLNG, QCLNG, NWS and Gorgon. Malaysia's Petronas has deals with Cnooc Ltd. and Jovo Energy Co.

No shipments of U.S. LNG arrived in China in April and May. Since the introduction of the first round of tariffs in September, eight cargoes have landed in China compared to 37 in the same nine-month period last year. A 25% levy introduced on June 1 is expected to bring U.S. imports largely to a halt.

Supply source of Chinese LNG imports