China Pins Hopes On U.S. Natural Gas

As the energy crunch continues, Chinese firms like Sinopec Corp ($SNP@China), China National Offshore Oil Company, and Zhejiang Energy ($CNY@China) are close to an agreement with Cheniere Energy ($LNG@US) and Venture Global to secure liquified natural gas supplies, including a 13-year deal between ENN Natural Gas and Cheniere. As gas prices rise and domestic power shortages continue, China is willing to spend tens of billions of dollars to dramatically increase its natural gas imports. The talks began early this year but accelerated as the energy crisis worsened. Cheniere stock rose nearly a percent on the news while China National Offshore stock fell about a tenth of a percent in early trading.