Two of China’s largest state-owned energy companies, Sinopec and Sinochem, have announced long-term agreements to import liquid natural gas (LNG) from US firms, a continuation of a trend that comes amid the fuel’s surging prices, reports Caixin. Sinochem Group announced a 17.5-year deal to buy as much as 1.8 million tons annually from Cheniere Energy, while China’s largest oil refiner, Sinopec, announced a 20-year contract with Venture Holding LNG to import 4 million tons of LNG annually.
It was the first long-term LNG contract with a US firm for Sinopec, also known as China Petroleum & Chemical Corp, as well as the largest single trading volume of LNG between the two countries within the last 10 years. China International United Petroleum & Chemicals, a Sinopec subsidiary, will also buy LNG resources totaling 3.8 million tons from a project of Venture Global over three years.
Chinese companies have so far this year signed more long-term contracts with foreign LNG producers than ever before, for a total of 17 million tons annually, of which firms in the US accounted for more than 5.8 million tons. This is followed by Qatar with 5.5 million tons, Russia with 5.16 million tons, and London-based BP PLC with over 875,000 tons.