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HKET: Chinese Companies Speed up Negotiations with U.S. to Secure LNG Supply

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that, due to energy shortage concerns, China is trying to finalize a supply deal with U.S. exporters of liquefied natural gas (LNG) as soon as possible. Sources revealed that major Chinese energy companies are in in-depth negotiations with U.S. exporters to secure long-term LNG supply. These negotiations may lead to agreements worth tens of billions of dollars, which could indicate a major surge in China’s LNG imports from the United States. It is worth noting that during the fierce US-China trade war in 2019, the natural gas trade was once suspended. These talks began at the beginning of this year, but the pace has accelerated in recent months because of the shortage of fuel for power generation and heating in China. Also, this year the price of natural gas in Asia has more than quadrupled, triggering concerns about power shortages in winter. Sources also indicated that at least five Chinese companies are negotiating with U.S. exporters, including large state-owned companies such as Sinopec, CNOOC, and local government sponsored energy distributors like Zhejiang Energy. The U.S. side mainly includes Cheniere Energy and Venture Global. The Chinese buyers have not responded to inquiries.

Source: HKET, October 15, 2021