China inked its first term deal to buy liquefied natural gas from an American exporter since the trade war disrupted deliveries, a sign of confidence that relations with the U.S. could be normalizing.
Foran Energy Group said it signed a framework agreement with U.S. producer Cheniere Energy Inc. to purchase 26 cargoes between 2021 and 2025. The deal was made during the annual trade fair in Shanghai, a signature project of President Xi Jinping designed to showcase China’s openness to the world. Prices will be linked to the U.S. Henry Hub benchmark.
Chinese firms had stopped signing longer-term supply contracts with U.S. exporters after Beijing slapped tariffs on shipments in retaliation to U.S. levies on Chinese goods in 2018. A long-negotiated supply deal between Cheniere and Sinopec, China’s refining and petrochemicals giant, never materialized due in part to the trade spat.