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Possible China-U.S. Gas Deal Said to Predate Trade War Talks

  • Sinopec discussed taking up to 2 million tons of LNG a year
  • Deal with U.S. exporter Cheniere is seen worth $18 billion
China Gas Craze Gets Help From Trucks as Pipelines Can't Keep Up
Photographer: Qilai Shen/Bloomberg
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A new gas supply deal between the U.S. and China that’s expected to be part of a broader trade agreement has been in the works since before the trade war began and was put on ice after tensions flared, according to people with knowledge of the matter.

A deal between Cheniere Energy Inc. and China’s Sinopec, expected to be worth $18 billion, has been cited as a new concession China would make to help end the eight-month spat. But the two had been in talks for about a year only to see progress stall when the Trump administration intensified trade issues in August, according to the people, who asked not to be identified as the information is private.