China Signs 20-Year Deal for US LNG Despite Ongoing Tariffs

A Chinese energy company has signed a 20-year deal to purchase American natural gas despite ongoing tariffs. China Gas Holdings agreed to buy 500,000 metric tons of liquefied natural gas (LNG) each year from Venture Global beginning in 2030. The agreement comes ahead of Chinese President Xi Jinping's expected state visit to Washington later this month.

The deal raises China Gas's long-term commitment with Venture Global to 2.5 million metric tons a year, according to the American exporter. This will be supplied from Venture Global's Louisiana projects, including the Calcasieu Pass and Plaquemines export plants. The company is also building CP2 in Louisiana.

China has kept a 15% tariff on U.S. LNG in place while suspending an additional 24% tariff on American goods for one year. Critics of LNG exports argue that selling American gas overseas raises prices for households at home, but S&P Global Energy found that growing exports would have a negligible effect on domestic gas prices.

According to the study, expanded exports would support about 555,000 jobs a year and add $1.4 trillion to gross domestic product through 2040. Average household gas costs are projected to rise 1.6% between 2026 and 2031, but domestic prices have trended downward since 2010 even as demand for American gas grew 70%.