China’s GPRIMG Enters Long-Term LNG Supply Agreement with ConocoPhillips

China’s Guangdong Pearl River Investment Management Group (GPRIMG) made headlines at the 29th World Gas Conference in Beijing with the announcement of its first long-term LNG purchase agreement, struck with U.S. energy major ConocoPhillips (NYSE:COP). The deal was signed on May 20 and disclosed through GPRIMG’s official WeChat account. It marks a significant step in the company’s push to expand its international energy footprint.

This development is particularly noteworthy given the broader geopolitical and trade context. It’s likely the first long-term U.S.-China LNG agreement since Beijing imposed tariffs on U.S. LNG imports. Since the February 2025 implementation of those tariffs, China has not taken delivery of any U.S. LNG cargoes, according to data from S&P Global Commodities at Sea. Previous shipments earmarked for China were either rerouted or sold on the spot market, underscoring the disruption to direct trade flows.

Although financial details were not disclosed, industry sources suggest the 15-year deal is indexed to Henry Hub prices, indicating the cargoes will originate from the U.S., with deliveries expected to begin in 2028. If accurate, this would reflect a renewed willingness on both sides to re-engage in long-term energy trade, even as tariffs remain in place.

Strategically, GPRIMG views this agreement as a milestone in the evolution of its gas business and a foundational move toward deeper internationalization. The company framed the deal as a response to shifting global gas dynamics, including heightened supply uncertainty and pricing volatility. By locking in long-term supply, GPRIMG is not only strengthening its resource security but also positioning itself to navigate the increasingly complex global energy landscape.

China’s gas imports declined in 2025, with seaborne LNG shipments dropping by 22% year-over-year through April. Despite the recent slowdown, China has played a dominant role in shaping the global gas market over the past decade, contributing to more than a third of the global growth in gas consumption. This rapid rise in demand helped transform China from a relatively small LNG player into the world’s largest importer by 2021.

For ConocoPhillips (NYSE:COP), the agreement adds another reliable off-taker to its LNG portfolio, potentially contributing to long-term revenue visibility amid a competitive global gas market.

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