China to contract for $18 billion in LNG shipments from Houston company?
Houston liquefied natural gas company Cheniere Energy is expected to sign an $18 billion LNG supply deal with China, two media outlets are reporting.Cheniere has some existing contracts with Chinese companies. This looks like it will be part of a new trade deal between the US and China that should mark the end of the tariff wars. China has also taken steps to stop Chinese companies from requiring technology transfers as part of transactions with US companies.
Cheniere declined to comment but both The Wall Street Journal and S&P Global Platts report that the Houston company is close to signing a long-term LNG supply deal with China's state-run oil company Sinopec.
The $18 billion deal could be announced as part of a broader US-China trade deal at a summit between U.S. President Donald Trump and Chinese President Xi Jinping at the end of March, the Journal reported.
A Beijing-based Cheniere executive who did not want to be identified told S&P Global Platts that the Houston company has been in talks with Sinopec "for some time" but declined to provide further details about the potential deal.
News of the potential deal comes days after the Federal Energy Regulatory Commission gave Cheniere the green light to put the first production unit at its Corpus Christi LNG unit into service and begin exports.