WGC2025: China's GPRIMG signs long-term LNG deal with ConocoPhillips

China's Guangdong Pearl River Investment Management Group announced via its official WeChat account that it signed a long-term LNG sale and purchase agreement with ConocoPhillips in Beijing at the 29th World Gas Conference on May 20.

The agreement marks GPRIMG's first long-term LNG purchase deal, with ConocoPhillips supplying LNG for 15 years, the company said, without disclosing further details.

However, market sources indicated that the contract is linked to Henry Hub prices, with supply expected to commence in 2028.

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 the first wave of tariffs in February 2025, China has not imported any LNG cargoes from the US, according to S&P Global Commodities at Sea data. All of these US-based volumes originally destined for Chinese terminals have either been swapped or diverted into the spot market.

Both ConocoPhillips and GPRIMG did not immediately respond to requests for comment.

In the statement, GPRIMG called the agreement a milestone in the development of its gas sector, citing major shifts in the global natural gas market, including changing supply dynamics and increased price volatility.

The company sees the agreement as a key step in its internationalization strategy, strengthening global energy cooperation, reinforcing resource planning and expanding its international presence.

The collaboration is also seen as a critical starting point for GPRIMG's deeper development of its natural gas business. Going forward, the company aims to leverage the agreement to strengthen its upstream and downstream gas value chain, improve resource coordination and industry control, as well as enhance market resilience and core competitiveness.

GPRIMG has been involved in the joint development of the Huizhou LNG receiving terminal, which has a designed processing capacity of 4 million mt/year, the company said on its official website.

The Huizhou LNG terminal, located in eastern Guangdong province and operated by Guangdong Energy Group -- a power producer owned by the provincial government -- began operations on Aug. 30, 2024.

The move underscores GPRIMG's commitment to strengthening its position in the international energy market and advancing sustainable energy solutions.