The first ever long-term contract to supply US liquefied natural gas to China has been signed by Texas-based Cheniere Energy, boosting the hopes for other companies positioning themselves to launch new export projects.

The 25-year deal with China National Petroleum Corporation means Cheniere has pulled ahead in the race to develop a new wave of US LNG export projects to come on stream in the 2020s. But it will also encourage other aspiring suppliers by showing that Chinese buyers can be persuaded to make long-term commitments.

China was the third-largest market for US LNG exports last year, after Mexico and South Korea, but until now the country has been buying spot cargoes rather than using the long-term contracts that exporters need to be able to finance new plants.