- Venture Global is in early-stage talks with at least three Chinese LNG importers, including PetroChina, over long-term contracts supplying fuel from its Louisiana export facilities. The PetroChina volume alone would exceed 1 million tons a year. The company signed a rare deal with a Chinese buyer last month for supply beginning in 2030.
- The discussions proceed despite Beijing imposing tariffs on American gas in 2025 in response to the trade war, indicating that security of supply is now outweighing trade policy for Chinese buyers.
- The cause is Hormuz. China is the world largest LNG importer and has been heavily reliant on Middle Eastern shipments, with nearly 30% of its imports coming from Qatar last year. Attacks have choked tanker traffic through the strait since late February and forced Qatar to shut a major export facility, with force majeure since extended.
- The near-closure has driven spot LNG prices sharply higher in Asia and Europe, prompting China to scale back purchases. Venture Global traded at 13.61 and US natural gas futures at 3.11, with domestic prices remaining low while international spot markets spike.
What Happened?
A Venture Global spokesperson declined to comment and PetroChina did not respond to a request for comment.
Why It Matters?
Energy security is beating trade policy, and this is the clearest example yet. Beijing placed tariffs on American gas as retaliation in the trade dispute, and Chinese importers are now negotiating multi-decade supply agreements with a US exporter regardless, because a single disrupted waterway has made their primary source unreliable. Tariffs are a policy choice that can be absorbed; a closed strait is a physical constraint that cannot. For anyone modelling how the trade conflict resolves, this suggests commercial necessity will route around policy where the stakes are high enough. The duration deserves attention. These are long-term contracts, with the deal signed last month beginning in 2030, so China is committing to American supply through the 2030s on the basis of a disruption that started in February 2026. That cuts two ways. Commitments made during an acute crisis can look different once it passes, but they also bind, which means Venture Global would hold contracted revenue from Chinese buyers whether or not Hormuz reopens. Contracted volume rather than spot exposure is what makes LNG developers financeable. The concentration that failed is instructive for anyone assessing supply chains. Nearly 30% of Chinese LNG came from a single country whose export capacity has now been partly shut, and the response is diversification toward a supplier that was politically disfavoured months ago. Combined with Korea committing $54 billion toward Alaska LNG, Asian buyers are collectively pivoting toward American gas, which makes US export capacity the structural beneficiary of the Middle East disruption. The domestic gas price at 3.11 against spiking international spot is the arbitrage that underpins the whole business, and it widens while the strait stays constrained.
What Next?
Watch whether these early-stage talks convert into signed long-term agreements, since the recent deal shows it is possible but the article describes the current discussions as preliminary. Whether Beijing maintains tariffs on American gas while its own importers sign US contracts is the policy question, and any removal would signal a broader thaw. Qatar force majeure status is the external variable that determines urgency, and a resolution of the Hormuz situation would reduce the pressure behind these negotiations. For US exporters, the measure to track is total contracted volume with Asian buyers, which is what converts the current disruption into durable revenue. Cheniere and other American exporters are competing for the same contracts.
Affected Tickers and Coins: VG, 857, NG, LNG
Source: Bloomberg
