U.S. LNG export project developer Venture Global and a subsidiary of China National Offshore Oil Corporation (CNOOC) have signed two new deals to supply the Chinese market with LNG.
The U.S. LNG exporter and CNOOC Gas & Power Group Co. announced the execution of a 20-year sales and purchase agreement (SPA). It marks the first LNG supply deal inked by the company with CNOOC, China’s largest importer of LNG.
Under the deal, Venture Global will supply 2 million tonnes per annum (MTPA) of LNG on a free on board basis from its Plaquemines LNG export facility in Louisiana.
In addition, CNOOC Gas & Power will purchase 1.5 million tonnes (MT) of LNG from Venture Global’s Calcasieu Pass LNG facility for a shorter duration.
“Venture Global is pleased to announce the expansion of our footprint in Asia through two new deals to supply the Chinese market with clean, low-cost US LNG,” said Mike Sabel, CEO of the company. “China is critical to global climate efforts, and LNG supplied by VG will serve as an important addition to their low carbon energy mix for decades.”
“As China’s largest LNG importer, CNOOC is committed deeply (…) to the climate goals of building a carbon-neutral China by 2060,” said Shi Chenggang, chairman of CNOOC Gas & Power. “By signing the SPAs with Venture Global, CNOOC will be able to further improve its ability to meet China’s increasing gas demand, whilst provide solid support for China’s energy transition pathway to build a more “beautiful China”.