Amid increased geopolitical uncertainty, China’s National Offshore Oil Corporation (CNOOC) has reached a 5-year liquified natural gas (LNG) deal with the United Arab Emirates (UAE) Abu Dhabi National Oil Corp. (ADNOC), with the former’s US tensions increasing.
The new deal is the third supply contract that the UAE has signed with Chinese buyers over the weekend, a Reuters report noted. Indeed, China’s ENN Natural Gas and Zhenhua Oil have both agreed to new term contracts for gas from the aforementioned ADNOC.
JUST IN: 🇨🇳🇦🇪 China signs 5-year Liquefied Natural Gas (LNG) deal with the UAE, bypassing US LNG amid ongoing tariff war. pic.twitter.com/EjM71NHsRq
— BRICS News (@BRICSinfo) April 21, 2025
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China & UAE Sign New Oil Deals as US Tariff War Continues to Play Out
In early April, the global economy was dealt a blow with the arrival of sweeping US tariffs on all trade partners. US President Trump’s Liberation Day plan created a concerning geopolitical obstacle, with nations retaliating. One of the most concerning responses has been increased engagement with China. Indeed, the White House announced that the country would face up to 245% in import duty increases.
The talks of a trade war between both nations have only grown more consistent in recent weeks. Now, China and the UAE have reached a landmark LNG deal as the former looks for more ways to navigate the rising import taxes.
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According to the report, Chinese buyers are looking for ways to navigate the rising costs from the tariff war. Subsequently, China imported no LNG from the US in March. Additionally, the US had only accounted for 5% of LNG in China throughout 2024.
China is the world’s largest LNG importer, meaning the new deals have become a necessity. Subsequently, ENN has signed a 15-year contract, the largest of all deals made. Moreover, it will come with one million tons of annual volume that is set to begin in 2028. Additionally, CNOOC’s Gas and Power group has agreed to a 5-year deal for 500,000 metric tons annually. Alternatively, that deal will begin next year.
