Venture Global and China Gas sign two LNG agreements
US liquefied natural gas (LNG) export project developer Venture Global LNG and China Gas Hongda Energy Trading, a wholly-owned subsidiary of China Gas Holdings, have signed two 20-year LNG sales and purchase agreements (SPA).
Venture Global said that, under the deals, China Gas will buy 1 million tonnes per annum (MTPA) of LNG on a free-on-board (FOB) basis from Plaquemines LNG and another 1 million MTPA from the CP2 LNG export facility, both in Louisiana.
Liu Minghui, Chairman and President of China Gas Holdings, said: “As a major participant in China’s energy market, we are committed to providing reliable and low-carbon LNG to Chinese customers. These two SPAs increase additional volume for our LNG portfolio and strengthen China Gas’s supply ability. We look forward to working with Venture Global over the coming years to help further reduce greenhouse gas emissions.”
Mike Sabel, CEO of Venture Global LNG said: “Venture Global is pleased to welcome China Gas as a customer both at Plaquemines and CP2. Through relentless execution and innovation, our company will continue to bring much needed new capacity to the global LNG market, supporting energy security and environmental progress both in Asia and Europe.”
“Importantly, low-cost LNG supplied to the region will accelerate fuel switching and lower carbon emissions, contributing meaningfully to China and the world’s existing climate targets.”
Plaquemines LNG has been under full construction since August 2021. According to Venture Global, when fully developed, it will have an export capacity of up to 20 million MTPA.
On the other hand, the construction of CP2 LNG is to start in 2023. The terminal is expected to have a capacity of 20 million MTPA of LNG and a peak capacity of approximately 24 MTPA. It will be located in Cameron Parish, Louisiana.
Besides Plaquemines and CP2, Venture Global’s LNG projects include Calcasieu Pass and Delta.
In December 2022, Venture Global signed an agreement with Japan’s oil and gas company Inpex for the purchase of 1 million MTPA of LNG.
Venture Global customers include ExxonMobil, Chevron, EnBW, and others.