A worker walks past the logo of China National Offshore Oil Corporation (CNOOC) at its Nanshan liquefied natural gas (LNG) terminal in Hainan province, China September 24, 2019.
Additionally, ENN Natural Gas, a privately controlled Chinese firm, and Zhenhua Oil, a state-owned energy trader, have each entered into separate term contracts with ADNOC to procure LNG. ENN’s deal spans 15 years, with one million tons of LNG annually starting in 2028. These agreements reflect China’s position as the world’s largest LNG importer and its efforts to diversify supply sources.
The contracts come as Chinese buyers navigate higher import costs due to trade measures affecting U.S.-sourced LNG. Data from Kpler and LSEG indicate China imported no U.S. LNG in March, with the U.S. previously accounting for about 5% of China’s LNG imports last year, per customs data. This has prompted companies to seek alternative suppliers like ADNOC.
A source familiar with the CNOOC deal confirmed the details but requested anonymity, as they are not authorized to speak publicly. CNOOC’s Gas and Power Group, which oversees the company’s gas operations, finalized the agreement. Neither CNOOC nor ADNOC immediately responded to inquiries for comment.
The deals highlight ongoing efforts by Chinese energy firms to secure stable, long-term LNG supplies to meet domestic demand.
