China’s Guangdong Pearl River Investment Management Group (GPRIMG) made a significant announcement at the 29th World Gas Conference in Beijing, revealing its first-ever long-term LNG purchase agreement with U.S. energy giant ConocoPhillips (NYSE:COP). The deal, which was officially signed on May 20 and shared via GPRIMG’s WeChat account, signifies a major milestone in the company’s efforts to expand its international energy presence.
The timing of this agreement is particularly noteworthy in the current geopolitical and trade landscape. This deal is believed to be the first long-term U.S.-China LNG agreement since China imposed tariffs on U.S. LNG imports in February 2025. As a result of these tariffs, China has not received any U.S. LNG shipments, with previous cargoes either redirected or sold on the spot market. This agreement signals a renewed willingness from both parties to engage in long-term energy trade despite the ongoing tariffs.
While the exact financial terms of the agreement were not disclosed, industry insiders suggest that the 15-year deal is tied to Henry Hub prices, indicating that the LNG will originate from the U.S. Deliveries are expected to commence in 2028, further solidifying the commitment from both GPRIMG and ConocoPhillips to long-term energy cooperation.
From GPRIMG’s perspective, this agreement represents a pivotal moment in the evolution of its gas business, marking a crucial step towards greater internationalization. By securing long-term LNG supply, GPRIMG is enhancing its resource security and positioning itself to navigate the increasingly complex global energy landscape amidst supply uncertainties and pricing fluctuations.
China, a key player in the global gas market, has experienced a decline in gas imports in 2025, with seaborne LNG shipments dropping by 22% year-over-year through April. Despite this recent slowdown, China has been instrumental in driving global gas consumption growth over the past decade, becoming the world’s largest LNG importer by 2021.
For ConocoPhillips (NYSE:COP), this agreement with GPRIMG adds another reliable off-taker to its LNG portfolio, potentially bolstering long-term revenue prospects in a competitive global gas market.
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This groundbreaking agreement between GPRIMG and ConocoPhillips underscores the importance of long-term energy partnerships in a rapidly evolving global landscape, highlighting the strategic foresight and commitment of both companies towards sustainable energy cooperation.
