China signs major liquefied natural gas deals with UAE to replace US supply amid trade war

China is doubling down on its energy ties with the Middle East, sealing a string of long-term liquefied natural gas (LNG) deals with Abu Dhabi’s national energy giant. The latest agreement, a 5-year supply contract between China National Offshore Oil Corporation (CNOOC) and Abu Dhabi National Oil Company (ADNOC), marks the third such deal in a weekend spree as China reshapes its LNG sourcing strategy.

The move comes amid a sustained trade war with the United States that has made American LNG increasingly expensive—and politically difficult—for Chinese companies to import. Instead, Chinese firms are locking in alternative supply lines from the Gulf region, a shift that could have long-term implications for global energy flows.

The Deal Details

CNOOC’s Gas and Power Group has signed a contract to buy 500,000 metric tons of LNG annually from ADNOC, starting in 2026. While the volume is modest by global standards, the symbolism is significant. This deal is just one part of a broader pivot. Privately controlled ENN Natural Gas and state-run Zhenhua Oil have also inked term contracts with ADNOC. ENN’s deal is the biggest of the three—a 15-year agreement for 1 million tons per year starting in 2028.

ADNOC’s flurry of contracts with Chinese buyers underscores two key trends: China’s push for stable, diversified energy sources and the growing importance of the Middle East in the global LNG trade.

Why the U.S. Is Losing Ground

The ongoing U.S.-China tariff standoff has effectively sidelined American LNG from the Chinese market. While the U.S. accounted for about 5% of China’s LNG imports last year, recent data shows that number plummeting. In March, China imported zero LNG cargoes from the U.S., according to tracking data from Kpler and LSEG.

With U.S. cargoes burdened by steep retaliatory tariffs, Chinese buyers have little incentive to continue sourcing from American suppliers. Many have turned to reselling U.S.-origin cargoes elsewhere instead of bringing them into Chinese ports.

The result? American LNG is no longer competitive in China, and Chinese firms are quietly but steadily building new supplier relationships to fill the gap.

The Bigger Picture

China is the world’s largest LNG importer, and its buying patterns matter. When Chinese companies shift their procurement strategies, they don’t just affect bilateral trade—they reshape global energy dynamics.

These new deals with ADNOC come at a time when global LNG markets are tight, and geopolitical tensions are complicating supply routes. The Middle East, with its established infrastructure and stable governments (relatively speaking), is emerging as a preferred partner for long-term energy cooperation.

For ADNOC, these deals represent a strategic win. The company is positioning itself as a key LNG player, expanding capacity and securing customers in Asia’s most critical market. For China, it’s a practical move to lock in supply security while sidestepping the political baggage that comes with dealing with the U.S.

What Comes Next?

Expect to see more of this. As long as U.S.-China trade tensions persist, Chinese buyers will keep looking beyond American shores for energy supplies. That likely means more deals with Gulf nations, and possibly closer ties with LNG exporters in Russia, Africa, and Southeast Asia.

Meanwhile, U.S. LNG exporters will need to work harder to find alternative markets for their cargoes—India, Europe, and parts of Latin America are likely targets, but none have the scale or appetite of China.

Bottom line: Energy security and trade politics are deeply intertwined, and China’s latest LNG deals with ADNOC are a clear sign of how Beijing is managing both. As the world’s biggest buyer of LNG, China is making moves that will ripple across the global energy landscape for years to come.