China signs 20-year mega-contracts with the US, reselling gas to Europe
Despite sharp customs and tariff disputes between the US and China, a completely unexpected and major geoeconomic process is being observed in the energy market. According to the influential Bloomberg agency, China's major energy giants plan to significantly expand their package of long-term contracts for the import of liquefied natural gas (LNG/STG) from the US.
The total volume of these agreements has directly come to equal the capacity of the main trunk pipeline leading from Russia to China — the "Power of Siberia" (Sila Sibiri).
Negotiations between Venture Global and Chinese giants
Against the backdrop of geopolitical conflicts involving Iran in the Middle East, which are disrupting global supply chains, Beijing is prompted to actively diversify its energy supplies:
New partners: US major LNG producer Venture Global is holding the final stage of negotiations with at least three major Chinese importers, including the well-known state-owned PetroChina;
PetroChina volume: According to agency sources, the volume of the deal to be concluded with PetroChina alone will exceed 1 million tons per year;
20-year deal with China Gas: Three weeks ago, Venture Global signed a new contract with China's China Gas corporation to supply 0.5 million tons of LNG per year for 20 years starting from 2030. As a result, China Gas's long-term annual supply volume from the company's projects has reached 2.5 million tons.
When numbers speak: A gigantic flow of 34 billion cubic meters
China has already become one of the largest global buyers of the American LNG industry:
Current and prospective volume: Currently, current contracts of Chinese companies with the US amount to nearly 10 million tons (14 billion cubic meters) per year. Upcoming new deals will guarantee an additional up to 15 million tons of gas per year;
Proportion with "Power of Siberia": The total annual volume will reach nearly 34 billion cubic meters. For comparison, last year 38.8 billion cubic meters of natural gas were supplied to China via Russia's "Power of Siberia" pipeline;
Diplomatic background: These new energy agreements are successfully signed on the eve of PRC leader Xi Jinping's expected visit to the US and under conditions where current tariff and duty restrictions have not been lifted.
Gas is being resold: Why is "Power of Siberia 2" stalled?
Behind China's strategy of buying American gas lies careful calculation and high profitability:
Re-export to Europe: Chinese companies are reselling a large portion of the LNG purchased from the US to European and Asian markets on flexible terms, without bringing it into their own territory. According to an assessment by the influential Rystad Energy, in 2026 the volume of this reselling will amount to 12 million tons (16.5 billion cubic meters);
Beijing's pragmatic policy: These figures explain why the construction of the second major pipeline that is supposed to connect Russia with China — "Power of Siberia 2" — is still delayed. On the one hand, Beijing does not want to put all its eggs in one basket, and on the other hand, due to the availability of multiple alternatives, it is demanding maximum price reductions for gas from Moscow.
This step by China clearly demonstrates that the balance on the global energy map is shifting and, despite trade wars, economic interest is prevailing over politics.
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