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A good news came on October 21. China and the United States signed a natural gas supply contract. The contract stipulates that the United States supplies 4 million tons of natural gas to China every year for 20 years. This agreement creates history for China and the United States. For the United States, it can double the export of natural gas and effectively solve the current economic crisis faced by the United States. It is reported that three agreements have been reached in this cooperation. During the period of global energy shortage and soaring natural gas prices, China signed this contract, which can further ensure the long-term and stable supply of key energy products of natural gas. But this news is bad news for Australia. Previously, the United States strongly instigated Australia to confront China, but now it has sold Australia and seized the Chinese market. Australia is too late to repent, but it is unable to turn back.

China and the United States signed a huge contract of 80 million tons

Earlier, it was reported that under the situation of global energy shortage, China and the United States will sign relevant cooperation agreements on natural gas, and the transaction scale of the two sides may reach tens of billions of dollars. It is reported that at the negotiation meeting before the formal signing of the contract, there were at least five Chinese enterprises participating in the meeting, including Sinopec, which ranked first in the world in the field of oil and gas, and the representative of the United States was the largest LNG producer in the United States.

Good play? China and the United States have signed a huge 20-year contract, Australia wants to cry without tears, and Europe is worried about "buying up" natural gas

Previously, due to the trade war, the natural gas trade between China and the United States was interrupted. This time, the two countries suddenly signed a huge amount of cooperation. What is the reason has also attracted widespread attention. A Chinese investor believes that the reason why China will start natural gas trade cooperation with the United States is mainly because the current global energy crisis has led to a significant increase in natural gas prices, while the United States, as an energy power, can provide China with more favorable prices, and the supply system is relatively stable. When the United States is facing a serious economic crisis, We also have to take China as a life-saving straw.

According to the documents published on the website of the U.S. Department of energy, the Agreement specifically includes specific provisions for a period of 20 years and a total of 4 million tons of LNG to China every year. This huge transaction has greatly improved the export capacity of the global venture capital LNG Company's factory in Louisiana. In addition, more details will flow out at the end of this year. A senior person in China's natural gas industry said that China has surpassed Japan to become the world's largest natural gas buyer, and this transaction with the United States has also become the largest single LNG trade agreement in China's history. The announcement also shows that the two 20-year agreements include sales and procurement agreements. The two agreements are based on FOB sales and ex port sales respectively. The former is 2.8 million tons a year and the latter is 1.2 million tons a year. In fact, they were signed last month. In addition, another document has been published on the US government website, which is the third agreement signed by global venture capital LNG Company and Sinopec trading subsidiary unipec. This agreement indicates the specific time of the transaction. From March 1, 2023, another US production facility will supply 1 million tons of natural gas to China every year for three years.

Good play? China and the United States have signed a huge 20-year contract, Australia wants to cry without tears, and Europe is worried about "buying up" natural gas

For the United States, the cooperation agreement with China can be said to solve some of the urgent needs of the United States, so there is no need to hesitate. As mentioned above, China is currently the world's largest natural gas buyer. If the United States is not willing to sell, naturally there are other countries willing to sell, so there is no reason for the United States not to make this money, and in order to make this money, It will also offer more favorable prices than other countries. After all, this can greatly alleviate the economic crisis of the United States. Moreover, there is a problem in the trade cooperation between China and the United States. China has a lot of things to import, but the United States is unwilling to sell, which puts the United States in a disadvantageous position in the Sino US trade. The widening Sino US trade deficit is not good for the United States. Therefore, China's willingness to sign this huge contract with the United States can also alleviate the adverse situation of the United States. In addition, it is also beneficial for China to import natural gas from the United States. First, with the global energy shortage, the price of natural gas continues to soar. In addition, China is trying to change to clean energy, and large and small industries have turned to natural gas. Therefore, China's demand for natural gas is expanding and signed this contract with the United States, It can also ensure China's long-term and stable natural gas supply. Secondly, as a big country with foresight and pattern, China originally hopes to help each other, friendly cooperation and common development with the United States in economy. Therefore, signing this contract is also in our interests. Indeed, some people believe that the time point for signing the cooperation agreement is very subtle, just after Biden took the initiative to seek peace and hope to alleviate China US relations. Therefore, China US trade relations are likely to heat up.

Australia was "sold" by the United States

Some people are happy and others are sad. This good news for China and the United States is not so friendly to Australia. Previously, the United States has constantly instigated Australia and China to confront each other. It can be said that the tension between China and Australia has its share. Turning to history, although the relationship between China and Australia is not particularly close, it is not as tense as it is now. It can be said that it is more harmonious, but why does this friendly relationship not continue, Instead, it has become what it is now? This is entirely due to Australia. Today's Australia is very different from decades ago. Under the "adjustment" of the United States, it seems to have become a tool for the United States to fight China. Previously, Australia blindly followed the United States and was willing to become a hawk dog of the United States, constantly clamoring with China. Originally, there was no fundamental conflict of interest between China and Australia, but Australia had to go to the black one way and lost many huge market shares in China by self mutilation. On the one hand, the United States reassured Australia that it was willing to meet the challenges together and support rule-based international trade. On the other hand, after Australia lost the market of beef, fruit and wine in China, it immediately made up for it. Even Bloomberg and other American media said that Australia was losing the Chinese market, and the United States was still encouraging it to continue to fight with China. So what is the result of the struggle? In addition to losing the huge Chinese market, only the verbal praise of the United States and the nuclear submarines in the distant future have no substantive benefits.