Venture Global, a U.S. liquefied natural gas exporter, has begun early negotiations on long-term sales with a set of Chinese customers, per people with direct knowledge of the talks. At least three importers are in the mix, including PetroChina, and supply would come from the company's export plants in Louisiana. A spokesperson for Venture Global said the company would not comment. PetroChina did not answer a request for comment.
The potential PetroChina tranche would amount to above 1 million tons annually, the people said. Separately, Venture Global signed an uncommon agreement with a Chinese company last month that schedules supply starting in 2030.
Energy trade between the two largest economies is always partly political. Market Briefs covers LNG free every weekday.
China, the largest purchaser of LNG, relies significantly on shipments sourced from the Middle East. However, the Iran war has heightened concerns as attacks have limited tanker traffic via the Strait of Hormuz and compelled Qatar to suspend a major export facility. Since late February, with the waterway nearly closed, benchmark LNG prices in Asia and Europe have surged, leading China to cut back on buying.
Qatar accounted for nearly 30% of China's LNG imports last year. Despite China's 2025 tariffs on American gas enacted in response to President Donald Trump's trade war, the country is still pursuing U.S. supply.
The conversations suggest Chinese buyers are growing more comfortable tapping U.S. supply despite the tariff overhang. For everyday investors, the takeaway is straightforward: when a key shipping lane tightens and a top buyer seeks to diversify, long-term contracts can shift where energy cash flows in the years ahead.
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