China has banned the construction of new soyabean crushing plants, in a move designed to reduce overcapacity in the industry and check the growing market share of foreign companies in the food oil business. The announcement, by an official of the economic planning ministry in Beijing yesterday, follows the related decision late last year to restrict foreign ownership in new crushing plants to 49 per cent.

China yesterday signed two multibillion-dollar long-term deals to buy liquefied natural gas from Qatar, marking a milestone in Asia's evolution as the hottest market for the fuel. PetroChina struck a deal to buy 3m tonnes of LNG a year over 25 years from 2011 with Qatar and its partner, Royal Dutch Shell. Analysts said the deal could could be worth as much as $60bn. CNOOC, China's primary LNG importer, also signed a framework supply agreement. Al-though it is yet to be formalised in a binding contract, it is for 2m tonnes a year from 2009.