ADNOC has signed an agreement with China’s CNOOC to supply 500,000 tons of LNG every year, according to a report
Abu Dhabi’s government-owned energy company, ADNOC, has reportedly made a deal to sell liquefied natural gas (LNG) to China National Offshore Oil Corporation (CNOOC).
5-year LNG deal
ADNOC has agreed to sell 500,000 metric tons of LNG every year to a Chinese company for five years, starting in 2026, according to Reuters.
This deal is the third one ADNOC has signed with Chinese companies. Earlier, ADNOC made similar agreements with ENN Natural Gas and Zhenhua Oil. These deals come amid growing trade tensions between China and the US.
ENN Natural Gas said it agreed to buy about one million metric tons of LNG every year for 15 years. This is ADNOC’s biggest LNG deal with a Chinese company. ENN also mentioned that the deal helps improve their energy supply and bring in more sources.
Zhenhua Oil, a state-owned company, also signed a five-year deal with ADNOC starting in 2026, agreeing to buy up to 12 LNG shipments per year, Reuters reported.
Tariff challenge
Chinese LNG buyers are trying to resell US LNG to avoid new tariffs imposed by China. They are also looking for new deals with other countries to replace US LNG.
This new deal with ADNOC is part of China’s plan to diversify its energy sources and reduce dependence on US LNG, which has become less competitive because of higher tariffs. In March 2025, China didn’t import any US LNG, a big decrease from the previous year, Reuters reported.
Published: 22th April 2025
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