Venture Global in LNG Long-Term Contract Negotiations with PetroChina and at Least Three Other Chinese Buyers
nashnova research
U.S. LNG exporter Venture Global is in early talks with PetroChina and at least two other Chinese importers on long-term supply deals exceeding one million tonnes per year — a sign that the Iran-war shipping disruption is pushing China back toward American gas, tariffs notwithstanding.
Who is at the table, and how big is the deal?
Venture Global is negotiating with at least three Chinese LNG importers, including PetroChina (中石油), according to Bloomberg.
The PetroChina volume alone would exceed one million tonnes per year, sourced from Venture Global's Louisiana export facilities.
Last month Venture Global already signed a separate supply agreement with another Chinese firm, with deliveries starting in 2030 — these new talks, if completed, would further expand its China footprint.
Why is China suddenly willing to talk to a U.S. supplier?
The trigger: the Iran war has left the Strait of Hormuz nearly closed since late February, sending Asian and European spot LNG prices surging.
This means → China's most critical Middle Eastern shipping lane is severed, the spot market is expensive and unreliable, and locking in long-term contracts has become urgent.
Qatar was forced to shut a major export facility and extend force-majeure declarations — and Qatar accounted for roughly 30% of China's LNG imports last year.
In plain terms = nearly a third of China's biggest gas source vanished overnight, so Beijing has to find new sellers — and the U.S. is back on the list.
What about tariffs — aren't the two sides in a trade war?
Beijing imposed additional tariffs on U.S. natural gas in 2025, retaliating against the Trump administration's trade measures.
Yet supply-security pressure is clearly overriding the tariff cost: China is the world's largest LNG importer, heavily dependent on Middle Eastern supply, and alternatives are scarce if that corridor is unstable.
This reflects a hard reality — tariff barriers can be absorbed or worked around, but the risk of physical supply disruption cannot.
What should we watch next?
Variable one: how long the Middle Eastern disruption lasts — if the Strait of Hormuz reopens soon, China's urgency to lock in U.S. long-term contracts fades.
Variable two: whether Beijing's tariff policy becomes a real barrier — for now, companies are already negotiating, but there is no clear policy-level signal of easing.
In plain terms = whether this deal gets signed comes down to which weighs more — the fear of Middle Eastern supply cuts or the political cost of buying American.
市场有风险，内容仅供研究参考，不构成投资建议。