China Resumes US LNG Talks as PetroChina Seeks Long-Term Deals

China is reviving its interest in U.S. liquefied natural gas (LNG) after a year-long hiatus. PetroChina Company Limited, the country's largest state-owned energy firm, is in early talks with U.S. LNG provider Venture Global for long-term supply deals. The negotiations, still in preliminary stages, involve over 1 million tons of LNG annually from Venture Global's Louisiana facilities. However, details on contract finalization and supply timelines remain undisclosed.

The shift comes amid heightened global energy supply chain uncertainty due to the U.S.-Iran war, which has disrupted LNG shipments. China is diversifying its LNG suppliers as a result. Previously, China halted U.S. LNG purchases in March 2025 following a 15% retaliatory tariff imposed in response to U.S. tariffs on Chinese goods.

Despite the ongoing tariff, Chinese corporations are pursuing long-term U.S. LNG agreements. Last month, China Gas Holdings signed a 20-year deal with Venture Global for 500,000 tons of LNG annually starting in 2030. Diplomatic discussions between the U.S. and China have also explored options to lower or remove the LNG tariff, though no concrete measures have been announced.

The outcome of negotiations between PetroChina and Venture Global could signal broader Chinese interest in U.S. LNG. However, the future of LNG trade between the two countries hinges on whether China reduces or eliminates the 15% tariff on U.S. LNG.