First direct US LNG cargo since tariff dispute reaches China, may be re-exported

However, the cargo's arrival does not necessarily mean China will take in the imported LNG, said Vortexa market analyst Florence Yu.

"Yangpu port has bonded LNG storage tanks as part of Hainan's special customs operations strategy. These are actually China's first LNG storage tanks approved for bonded operation, allowing LNG to be stored, traded, and re-exported without paying Chinese import duties," she said.

"Chinese players have great flexibility under this condition. The cargo can be resold later for portfolio optimization or, if domestic supply becomes critical, it can still be imported into China after clearing customs."

The tanker is controlled by QatarEnergy, which bought the cargo on a spot basis from Plaquemines for delivery to China, according to Kpler data.

"We believe it might not enter China's domestic gas market, even though it was technically unloaded in Yangpu. The bonded tank status makes re-export quite likely. Besides, domestic demand remains weak in China, especially in industrial sectors," said Nelson Xiong, analyst at Kpler.