In a strategic shift away from the US energy market, China National Offshore Oil Corporation (Cnooc) has signed a long-term liquefied natural gas (LNG) supply agreement with the Abu Dhabi National Oil Company (Adnoc). The move marks the third LNG supply contract Adnoc has secured with Chinese buyers in a single weekend, according to Chinese trading sources and state media.
This flurry of deals reflects the intensifying impact of the ongoing tariff war between China and the United States, which has compelled Chinese buyers to offload American-sourced LNG cargoes and seek alternative arrangements amid soaring import costs caused by tit-for-tat tariffs.
Pivoting Away from US LNG as Trade Tensions Mount
Due to these growing trade disputes, Chinese buyers have significantly reduced their reliance on US LNG. According to data from Kpler and LSEG, China did not import any LNG from the United States throughout March. For perspective, US-sourced gas accounted for nearly 5 per cent of China’s total LNG imports in 2024, according to customs records.
This new contract, confirmed by two Chinese trading sources who requested anonymity due to the sensitive nature of the talks, illustrates the widening gap between China and US energy trade as geopolitical and economic strains escalate.
Adnoc Expands Its Reach in China’s Energy Market
Under the terms of the latest agreement, Cnooc’s Gas and Power Group—the unit responsible for handling the company’s gas business—will purchase 500,000 metric tonnes of LNG annually from Adnoc over a five-year period, with deliveries set to begin in 2026.
Alongside this deal, ENN Natural Gas, one of China’s leading private LNG importers, and Zhenhua Oil, a state-backed trading company, also finalized separate term contracts with Adnoc for LNG supply, further underlining Abu Dhabi’s growing role as a reliable energy partner for China amid ongoing global trade volatility.
While both Adnoc and Cnooc have declined public comment, these agreements signal China’s determined effort to diversify its LNG supply chain and cushion the economic impact of strained relations with Washington.
