State-run China National Offshore Oil Corporation (CNOOC) has come to agreement with Abu Dhabi National Oil Corp (ADNOC) to purchase LNG from the Gulf company, Reuters reported on April 21 citing state media and trading sources.

The deal will see CNOOC purchase 500,000 tonnes per year (tpy) of LNG beginning in 2026. The contract will run for a 5-year period, industry sources told Reuters.

The deal marks the latest agreement between a Chinese energy firm and ADNOC as Chinese buyers cozy up to the United Arab Emirates’ state-run company amid an escalating trade war between the US and China.

Also this week, Chinese private energy firm ENN Natural Gas reached a 15-year deal with ADNOC to purchase 1mn tpy of the super-chilled fuel starting in 2028. The agreement marked ADNOC’s biggest LNG contract with a Chinese supplier to date.

Additionally, state-operated Zhenhua Oil also came to agreement to purchase LNG from the Gulf supplier.

US President Donald Trump has raised tariffs to 145% on Chinese imports. And White House officials claim that since the Biden Presidency and the first Trump administration, tariffs on some Chinese products have hit as high as 245%.

Meanwhile, Beijing has pushed back in the tit-for-tat tariff war, placing 125% tariffs on US imports, while also warning countries against reaching trade deals with Washington at China’s expense.

Despite the US being the world’s largest exporter of LNG and China the biggest importer, the two superpowers have conducted limited business in the LNG industry. In 2024, Chinese customs data showed that China purchased just 5% of its LNG from US companies.

And in March, China did not import any US LNG according to data from Kpler and the London Stock Exchange Group (LSEG).

Instead, Chinese buyers have pivoted to reselling US LNG cargoes to purchasers in Europe.