China is set to buy a whopping 100 GW more natural gas from the United States over the next decade, the country’s State Council said on Wednesday, as Beijing sought to counter a rising US demand for energy.
The State Council did not specify what it would buy.
The announcement comes just days after the US Department of Energy (DOE) said it had signed a contract with Chevron to buy 2.8 GW of US shale gas, a deal that will be worth $2.5bn.
It was not immediately clear whether the Chinese purchase would be made from a state-owned entity.
US energy secretary James Jones said in a statement on Wednesday that he had made it clear to President Donald Trump that “we will no longer be purchasing natural gas as a part of our energy strategy.”
“The United States is a global energy superpower and our energy policy should reflect this fact,” he said.
The White House had previously said that the US would continue to purchase US natural and natural gas.
It is not clear what will happen to the US-owned company after it signs the contract with the Chinese.
The contract for the gas was signed by the Chinese state-run energy company CNOOC and the US state-controlled company Enron in September.
China and the United Kingdom have been locked in an energy dispute over the disputed waters of the South China Sea, which has led to a sharp increase in US naval activity.
A separate dispute over control of the strategically located Spratly Islands has also flared.
China is one of the world’s largest oil consumers and is the world leader in both gas production and imports.
The United States, which supplies roughly 10% of China’s total oil consumption, has argued that the islands should be returned to China, but Beijing has refused to do so.