China Looks To Lock In U.S. LNG As Energy Crunch Raises Concerns

China Looks To Lock In U.S. LNG As Energy Crunch Raises Concerns

Andrew H. Sweet

At least five Chinese firms, including state major Sinopec Corp and China National Offshore Oil Company (CNOOC) and local government-backed energy distributors like Zhejiang Energy, are in discussions with U.S. exporters, mainly Cheniere Energy (LNG.A) and Venture Global.

The discussions could lead to deals worth tens of billions of dollars, marking a surge in China's LNG imports from the United States in coming years. At the height of a Sino-U.S. trade war in 2019, gas trade briefly came to a standstill.

It's hard to estimate a total volume of the deals being discussed, sources said, but Sinopec alone could be eyeing 4 million tons annually as the company is most exposed to the spot market versus domestic rivals PetroChina and CNOOC, said the third source.

It was the first major U.S.-China LNG deal since 2018.

Read the original story here.

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