China stops importing US LNG, shifts to the UAE, signing a historic agreement: ADNOC opens an office in Beijing to strengthen energy cooperation.

Taiwan • Business • 04/19 03:05
China stops importing US LNG, shifts to the UAE, signing a historic agreement: ADNOC opens an office in Beijing to strengthen energy cooperation.

Since February 6, 2025, China has not imported U.S. liquefied natural gas (LNG) for more than ten weeks due to a tariff increase to 49% and a government directive to halt transactions. On April 18, 2025, the Abu Dhabi National Oil Company (ADNOC) announced the establishment of an office in Beijing and signed long-term LNG supply agreements with three Chinese energy companies. Among these, a 15-year contract with ENN Energy has an annual supply volume of 1 million tons, marking the largest LNG transaction between China and Abu Dhabi, indicating a shift in China's energy import strategy towards the Middle East region and strengthening bilateral cooperation.

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04/19 03:05

China stops importing US LNG, shifts to the UAE, signing a historic agreement: ADNOC opens an office in Beijing to strengthen energy cooperation.

Since February 6, 2025, China has not imported U.S. liquefied natural gas (LNG) for more than ten weeks due to a tariff increase to 49% and a government directive to halt transactions. On April 18, 2025, the Abu Dhabi National Oil Company (ADNOC) announced the establishment of an office in Beijing and signed long-term LNG supply agreements with three Chinese energy companies. Among these, a 15-year contract with ENN Energy has an annual supply volume of 1 million tons, marking the largest LNG transaction between China and Abu Dhabi, indicating a shift in China's energy import strategy towards the Middle East region and strengthening bilateral cooperation.

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China Completely Halts Imports of US LNG

According to shipping data, since the last US vessel carrying 69,000 tons of LNG arrived in Fujian on February 6, 2025, mainland China has not imported US liquefied natural gas for more than ten weeks. Previously, China imposed a 15% tariff on US LNG on February 10, which was later increased to 49%, significantly reducing the economic incentive for Chinese buyers to import LNG from the US. Some loaded US LNG ships were even forced to reroute to other countries, such as Bangladesh.

Additionally, according to foreign media reports, the Chinese government has issued clear instructions requiring buyers, including state-owned oil companies, to fully suspend LNG transactions with the US, covering all aspects such as signing contracts, picking up, and receiving goods. This decision has stalled existing long-term LNG contracts between China and the US, forcing some cargoes to be rerouted, causing a significant impact on the US LNG export market.

ADNOC Signs Three LNG Supply Agreements with China

Against the backdrop of the disrupted China-US LNG trade relationship, the Abu Dhabi National Oil Company (ADNOC) quickly filled the market gap. On April 18, 2025, ADNOC announced the signing of three LNG supply agreements with three Chinese energy companies, setting a new historical high for China-UAE energy cooperation.

The most representative agreement is the 15-year LNG sales and purchase agreement signed with "ENN LNG (Singapore) Private Limited," a wholly-owned subsidiary of ENN Natural Gas Co., Ltd., one of China's largest private energy companies. According to the agreement, ADNOC will supply 1 million tons of LNG annually to ENN from its Ruwais LNG project in Abu Dhabi, with deliveries expected to start in 2028. This is the largest LNG contract between China and the UAE to date.

ENN Energy has been involved in the urban pipeline gas business since 1992 and currently operates 178 city gas projects in mainland China, serving 17.299 million households and 102,000 industrial and commercial enterprises, serving an urban population of 88.61 million people, making it a leader in China's clean energy distribution sector.

In addition to ENN Energy, ADNOC's wholly-owned subsidiary ADNOC Trading Company also signed two other LNG supply agreements with China National Offshore Oil Corporation Gas & Power Group Co., Ltd. and Zhenhua Oil Holdings Limited. Although the specific supply volumes and terms were not disclosed, these three agreements collectively establish a significant strategic presence for ADNOC in the Chinese market.

ADNOC Beijing Office Opens, Deepening China-UAE Energy Cooperation

To support its growth in the Chinese market, ADNOC simultaneously announced the establishment of a sales and marketing office in Beijing. This office will focus on promoting the company's business development in China and strengthening long-term business relationships with Chinese customers and partners.

Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director, and Group CEO, stated: "We will use this LNG agreement as an opportunity to work with our Chinese partners to further explore the potential of various segments of the energy industry chain, contributing to China's energy security."

In recent years, ADNOC has been actively expanding its influence in the Asian market. In addition to this cooperation with China, the company has also signed a long-term LNG supply agreement with Japan's Mitsui & Co., Ltd. and continues to advance its Ruwais LNG project. This project is expected to be operational in 2028, with an annual capacity of 9.6 million tons, of which approximately 8 million tons have been signed under long-term supply contracts. Ruwais LNG is set to become one of the world's lowest carbon emission intensity LNG facilities, driven by clean energy and artificial intelligence technology.

Background of Expanding China-UAE Energy Cooperation

ADNOC's collaboration with Chinese energy companies extends beyond the LNG sector. In 2024, ADNOC signed strategic agreements with China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC), covering multiple areas such as low-carbon energy, oil and gas exploration, advanced technology, refining, and trade. These collaborations further solidify the UAE's position as an important partner in China's energy supply diversification strategy.

According to UAE official data, bilateral trade between the UAE and China reached $74.6 billion in the first nine months of 2024, with an annual growth rate of 7.2%. Energy cooperation has emerged as a crucial pillar of bilateral economic and trade relations.

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