China Locks in 20-Year Deal for American Natural Gas Despite Tariffs

Chinese energy company China Gas Holdings has locked in a 20-year deal to buy American natural gas, despite China's preexisting tariff on U.S. products. The agreement was signed with Venture Global and will begin in 2030, with China Gas committing to purchase 500,000 metric tons of liquefied natural gas (LNG) per year.

This long-term contract raises China Gas' commitment with Venture Global to 2.5 million metric tons per year, according to the American exporter. The LNG will be supplied from Venture Global's Louisiana projects, including the Calcasieu Pass and Plaquemines export plants.

While some critics argue that exporting American gas overseas drives up domestic prices, a recent study by S&P Global Energy found that expanded exports would support over 555,000 jobs per year and add $1.4 trillion to gross domestic product through 2040. The study also projects that average household gas costs will rise just 1.6% between 2026 and 2031.