The U.S. Commerce Department had announced an agreement to open the Chinese market to a select U.S. exports, which includes natural gas. According to Reuters, Cheniere Energy, Inc. (NYSE: LNG) rose 4 percent after the company announced “extensive negotiations” with Chinese state owned companies to increase liquefied natural gas exports to China.
On Thursday, the Commerce Department announced an agreement to open the world’s second largest economy to certain exports, including LNG. The country’s state-controlled firms will now have the permission to enter into long-term purchasing contracts with U.S. suppliers. Cheniere Energy operates the only LNG export out of the lower 48 United States. Since the Sabine Pass terminal in Louisiana opened in 2016, the company has sold nine LNG cargoes to China.
“We have had extensive negotiations with the Chinese over the last month,” Eben Burnham-Snyder, Cheniere’s spokesman told Reuters.