China targets some Australian LNG as trade dispute widens

China targets some Australian LNG as trade dispute widens

At least two of China’s smaller liquefied natural gas (LNG) importers have been told to avoid buying new cargoes from Australia, a further example of the impact on trade from souring ties between the two countries.

The firms have received verbal orders from government officials to avoid purchasing additional LNG from Australia for delivery over the next year, according to people with knowledge of the directive, who asked not to be identified as the details aren’t public.

Larger state-owned importers that carry out almost 90% of purchases haven’t received any guidance and plan to continue buying Australian LNG, separate traders said, signalling that the impact on imports may be limited.