China and UAE Seal Five-Year Liquefied Natural Gas Agreement Amid Escalating US Trade Tensions

In a strategic move underscoring shifting global energy alliances, China and the United Arab Emirates have finalized a comprehensive five-year LNG supply agreement. This development coincides with heightened trade frictions between China and the United States, potentially signaling a realignment of energy procurement strategies. The deal, which guarantees stable LNG exports from the UAE to China through 2030, represents a significant step in energy security cooperation between the two nations. Industry analysts suggest this agreement may serve as a hedge against potential supply chain disruptions caused by ongoing US-China trade disputes, particularly in the energy sector. The partnership also reflects China’s continued diversification of its energy import sources and the UAE’s strategic positioning as a reliable LNG exporter to Asian markets.

China & UAE Sign New Oil Deals as US Tariff War Continues to Play Out

In early April, the global economy was dealt a blow with the arrival of sweeping US tariffs on all trade partners. US President Trump’s Liberation Day plan created a concerning geopolitical obstacle, with nations retaliating. One of the most concerning responses has been increased engagement with China. Indeed, the White House announced that the country would face up to 245% in import duty increases.

The talks of a trade war between both nations have only grown more consistent in recent weeks. Now, China and the UAE have reached a landmark LNG deal as the former looks for more ways to navigate the rising import taxes.

According to the report, Chinese buyers are looking for ways to navigate the rising costs from the tariff war. Subsequently, China imported no LNG from the US in March. Additionally, the US had only accounted for 5% of LNG in China throughout 2024.

China is the world’s largest LNG importer, meaning the new deals have become a necessity. Subsequently, ENN has signed a 15-year contract, the largest of all deals made. Moreover, it will come with one million tons of annual volume that is set to begin in 2028. Additionally, CNOOC’s Gas and Power group has agreed to a 5-year deal for 500,000 metric tons annually. Alternatively, that deal will begin next year.