Bilateral trade in liquefied natural gas between China and the United States holds vast potential for pragmatic cooperation, offering mutually reinforcing benefits that can contribute to global energy stability as international LNG markets undergo profound structural adjustments.

The trade ties, which have spanned a decade since China received its first US LNG shipment in 2016, have served as a critical economic bridge between the world's two largest economies, said Duan Zhaofang, director of the Department of Gas Market Research at the China National Petroleum Corp's Economics and Technology Research Institute.

Following a flurry of long-term LNG offtake agreements signed between 2021 and 2023, bilateral energy cooperation is now entering a new strategic window of opportunity, Duan said.

"The expansion of US LNG export capabilities provides a solid resource foundation for deepening ties, as the country has reinforced its standing as the world's foremost natural gas producer," she said.

The US exported 110 million metric tons of LNG in 2025 and became the first country to cross the 100-million-ton threshold — accounting for approximately one-quarter of global LNG trade.

As European natural gas demand softens amid post-crisis structural adjustments, US suppliers are actively seeking reliable, large-scale buyers capable of stable long-term offtake, making China one of the most realistic, reliable partners for expanding US exports.

Complementing this supply surge, China's sustained gas market growth offers indispensable, long-term demand certainty, Duan added.

As China is moving to further diversify and secure its energy supply channels, the unloading capacity of LNG receiving terminals will be expanded to 200 million tons per year, according to the 15th Five-Year Plan for Petroleum and Natural Gas Development (2026-30), jointly issued by the National Development and Reform Commission and the National Energy Administration recently.

"Although domestic LNG import volumes experienced short-term adjustments over the past two years, the overarching market fundamentals pointing toward sustained growth remain unaltered," she said. "Backed by macroeconomic resilience and the nation's dual carbon goals, natural gas plays an indispensable bridging role in industrial fuel switching, power system peak-shaving and clean heavy transport."

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Data from the institute show natural gas consumption maintains steady upward momentum, underscoring how China's vast scale naturally complements US supply growth.

China's steady procurement provides crucial support for the financing and construction of US export infrastructure, while diversified US supplies enhance the flexibility and resilience of China's energy imports, said Duan.

Looking beyond bilateral commerce, she said China-US LNG cooperation carries global significance, as the international natural gas market is at a pivotal stage of supply-demand rebalancing and supply chain restructuring.

"As the world's top LNG importer and top LNG exporter, respectively, the commercial coordination between China and the US directly determines the overall operational efficiency, market transparency and price predictability of the global energy architecture. Both sides should prioritize common ground in energy security and climate mitigation, allowing commercial rationality and market mechanisms to guide LNG trade so that energy collaboration continues to function as an enduring stabilizer and ballast for broader bilateral relations," she added.

Contact the writers at zhengxin@chinadaily.com.cn