China would find it difficult to replace the LNG it currently imports from Australia should it choose to increase trade hostilities, according to industry observers.
Unconfirmed media reports recently indicated that smaller LNG buyers in China have been told that Australian spot LNG cargoes are now “off limits”.
While China’s second-tier LNG importers only account for around 10% of the country’s total imports, the move would signify a further escalation in China’s use of trade in what is an essentially political dispute.
