Venture Global is in early-stage talks to sell additional U.S. liquefied natural gas to Chinese buyers as disruptions from the Iran war push China to diversify its LNG supply sources, Bloomberg reports.
The exporter is discussing potential long-term contracts with at least three Chinese LNG importers, including PetroChina, to supply fuel from Venture Global’s export facilities in Louisiana, with PetroChina potentially purchasing more than 1 million metric tons of LNG annually. The discussions follow Venture Global’s rare recent agreement with a Chinese company for LNG deliveries beginning in 2030, signaling growing interest in U.S. gas despite trade tensions between Washington and Beijing.
China, the world’s largest LNG importer, is heavily reliant on Middle Eastern supplies, with nearly 30% of its LNG imports coming from Qatar last year. However, the Iran war has disrupted tanker traffic through the Strait of Hormuz and forced Qatar to shut a major export facility, raising concerns about the security of those supplies.
The near-closure of the strait since late February has driven up spot LNG prices in Asia and Europe, prompting China to scale back purchases.
