WGC2025: Robust global gas demand sparks hope for China-US LNG trade

The weeklong World Gas Conference in Beijing highlighted strong global demand for gas and LNG, offering a glimmer of hope for China-US LNG trade despite ongoing geopolitical and trade uncertainties.

The WGC2025, attended by thousands of delegates, took place amid concerns over tariffs introduced by US President Donald Trump, which have impacted the gas and LNG supply chain.

Despite the trade uncertainties, key speakers such as Qatar Minister of Energy Saad al-Kaabi, Woodside Energy CEO Meg O'Neill and ExxonMobil (China) Investment Co. Vice Chair Tze San Koh expressed optimism about the growth in gas demand, supported by economic expansion and other factors.

"I think gas is going to be here for the next century," Kaabi said. "People who were [critical of] oil and gas in general think gas was not required -- the decision just seven [or] eight years ago to proceed with the expansion of LNG -- I think realize now that gas is absolutely required."

Woodside's O'Neill said, "Gas demand could grow by 50% between now and 2030; [it is] a tremendous increase in gas demand," driven by economic growth and the role of gas as a lower-carbon solution in the world's journey toward net zero.

Similarly, ExxonMobil's Koh said that global demand is expected to grow by 20%, with China's natural gas demand projected to surge by 70% from current levels by 2050, supported by the potential for fuel switching away from coal.

Driven by strong domestic demand growth, PetroChina expects to increase its equity LNG volume by 75% from current levels to 35 million mt by 2030, Wang Haiyan, deputy general manager of PetroChina International, said.

The expected growth in equity LNG volume will also significantly boost PetroChina's LNG trading volume by 2030, reflecting its confidence in the near-term LNG market, Wang added.

Glimpse into deals

The robust gas demand outlooks were presented at the WGC2025 despite China not importing any US LNG cargoes since the first wave of tariffs in February, according to S&P Global Commodities at Sea data.

The US-China tariffs dispute may alter LNG trade flows, leading to more US cargoes being shipped to Europe, a Chinese source said on the sidelines of the conference.

Despite the trade tensions, there were some signs of hope for a recovery in LNG trade between China and the US, with China's Guangdong Pearl River Investment Management Group announcing a 15-year LNG sale and purchase agreement with ConocoPhillips.

This is likely the first US LNG SPA signed by a Chinese company since China announced tariffs on US LNG.

"Direct [LNG] contracts between China and the US remain challenging due to ongoing uncertainties in trade and relations between the two sides," Lu Xiao, research director for China gas and LNG at S&P Global Commodity Insights, said.

"Meanwhile, China's second-tier buyers continue to seek LNG term contracts. While they do not currently prefer US supplies, the pricing linked to Henry Hub benchmarks remains acceptable," Lu added.

At the WGC2025, market participants were buzzing with talk about the possibility of an additional deal linked to Henry Hub prices being finalized between a Chinese and a US company.

Still, "the current trade tensions may be headwinds for other projects that need those 20-year agreements," Woodside's O'Neill said in an online interview with Platts, part of Commodity Insights.

The WGC2025, meanwhile, saw public announcements of signed long-term LNG SPAs -- one between BP and China's Zhejiang Energy Group and another between Guangzhou Gas Group and trader Mercuria.