China National Offshore Oil Corporation (CNOOC) has finalised a term agreement with the Abu Dhabi National Oil Company (ADNOC) to purchase liquefied natural gas (LNG).

This move highlights a shift in China’s LNG procurement strategy amidst an ongoing tariff dispute with the US.

The agreement between CNOOC’s Gas and Power Group and ADNOC is set to commence in 2026 and will span five years.

Under the terms of the deal, ADNOC will supply CNOOC with 500,000 tonnes per annum of LNG.

Notably, China did not import any LNG from the US in March, according to data from Kpler and LSEG.

In the previous year, the US accounted for approximately 5 per cent of China’s LNG imports, according to Chinese customs data.

Retaliatory tariffs have increased import costs, leading Chinese importers to divert away from US-sourced LNG.

An industry source familiar with the agreement disclosed the details on condition of anonymity, as they were not authorised to speak publicly.

As of now, neither CNOOC nor ADNOC have released official statements regarding the deal.

This agreement is one of three contracts recently signed between ADNOC and Chinese buyers.

These deals signal a strategic pivot in China’s LNG sourcing, driven by the trade dynamics between China and the US.

Other agreements include a 15-year contract between ENN Natural Gas and ADNOC for the supply of one million tonnes per annum of LNG, commencing in 2028, which ENN Natural Gas confirmed via a WeChat post.

Additionally, Zhenhua Oil, another state-owned energy trader, has entered into a five-year agreement with ADNOC, starting in 2026, for the delivery of up to 12 LNG cargoes annually.