China National Offshore Oil has agreed a term deal to buy liquefied natural gas from Abu Dhabi National Oil (Adnoc), the third supply contract the Middle Eastern energy exporter signed with Chinese buyers over the weekend, according to two Chinese trading sources and a state media report.
Chinese privately controlled ENN Natural Gas and state energy trader Zhenhua Oil have each signed a term contract to secure the super-chilled gas from Adnoc, Reuters has reported.
A tariff war with the US has pushed Chinese buyers to resell US-sourced cargoes and secure new supply deals as tit-for-tat tariffs drive up import costs. China imported no US LNG during March, data from Kpler and LSEG show. The US accounted for about 5per cent of China's LNG last year, according to Chinese customs data.
CNOOC's Gas and Power Group, charged with the state energy company's gas business, agreed a 5-year deal starting 2026 for 500,000 metric tons of LNG annually, said the industry source with knowledge of the deal.
The three deals, led by ENN's 15-year contract with annual volumes of one million tons starting 2028, came as China, the world's largest LNG importer, has slapped steep tariffs on US LNG amid a tit-for-tat trade war that has seen Chinese buyers avoid bringing US cargoes home.
China Energy News on Saturday reported the deals, but provided little details. -Reuters