China Seeks Long-Term LNG Deals Beyond the Strait of Hormuz

AI Summary

China is negotiating long-term LNG supply agreements with exporters outside the Strait of Hormuz to reduce dependency on Persian Gulf gas deliveries. This strategic move follows regional instability affecting key shipping routes and facilities in the Middle East.

China’s giant state LNG importers are in talks to secure long-term LNG supplies from exporters that don’t need the Strait of Hormuz, as the world’s biggest LNG buyer seeks to reduce its exposure to gas deliveries from the Persian Gulf, sources familiar with the plans told Bloomberg on Friday. China is the top LNG customer of Qatar, and it sourced nearly 30% of its LNG supply from the Gulf exporter last year.    But as the Middle East conflict erupted and led to the closure of the Strait of Hormuz and damaged Qatari facilities,…