China's state-owned enterprises have confirmed a long-term contract to purchase large quantities of liquefied natural gas (LNG) from U.S. energy companies. This move comes as Chinese President Xi Jinping prepares for a visit to the United States next week, with China increasing its purchases of American energy and agricultural products.
On September 15, U.S. LNG company Venture Global announced in a statement that it has signed a contract with China Gas to supply 500,000 tons of LNG annually starting in 2030. Including this contract, China Gas has now secured long-term LNG purchase agreements with Venture Global totaling 2.5 million tons per year.
This development occurs amid a reduction in China's overall LNG purchases this year due to rising prices and declining demand. According to Bloomberg, the recent international LNG market has seen price increases due to reduced supply from Qatar, a major LNG producer and exporter, amid the ongoing conflict between the U.S. and Iran.
The timing of this long-term LNG purchase agreement is noteworthy, as it precedes the anticipated U.S.-China summit next week. China is the world's largest importer of oil and natural gas, while the U.S. is a key energy exporter.
China had effectively halted imports of U.S. LNG after imposing retaliatory tariffs on American LNG in February 2025 due to the trade war. However, Chinese companies are now looking to secure U.S. natural gas through long-term contracts despite the tariff burden.
In addition to energy, China is also increasing its purchases of U.S. agricultural products. According to Reuters, state-owned grain company Sinograin purchased approximately 1 million tons of U.S. soybeans last week. This purchase brings China's total U.S. soybean imports closer to half of the 25 million tons it agreed to buy annually under the trade agreement between the two countries.
* This article has been translated by AI.
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