With prices linked to Henry Hub, market sources suggested that the cargoes are likely coming from the US. This is likely the first US LNG SPA signed by a Chinese company since the announcement of China's tariffs on US LNG.

Since 2019 China’s energy system seems to be undergoing significant shifts.

Russia currently delivers gas to China via the Power of Siberia 1 pipeline, which is part of a US$400 billion, 30-year agreement between Gazprom and China’s CNPC which was signed in 2014.

Overall delivery of US LNG shipments in the first quarter of 2025 fell by 70%, according to Chinese official custom data released on Sunday.

On April 10, the US Department of the Treasury sanctioned nearly 30 oil tankers involved in shipping Iranian crudes, as well as a Chinese storage terminal.

As of end- 2024, coal-fired power represented 37% of China’s installed capacity but 60% of its power generation.

China operates 58 civil nuclear reactors and has almost 30 new builds in progress. This represents nearly half of all power reactors currently under construction worldwide.

China has announced the start of construction on three offshore wind projects totalling 3 GW off the coast of the Guangdong Province, southern China, namely the Fanshi-1, Qingzhou-5 and Qingzhou-7 projects.

Beijing slapped a 15% tariff on US LNG shipments from Feb. 10 in retaliation to American levies, which was further exacerbated last week by another set of Chinese levies on all imports from the US.

Asia more than doubled its installed solar capacity, with 327 GW added in 2024, including 85% (278 GW) in China and 10% (24.5 GW) in India; in addition, over 38 GW of solar capacity was installed in the United States, while Brazil and Germany each added over 15 GW.