Venture Global LNG signs two SPAs with CNOOC
US LNG developer Venture Global LNG said December 20 it had executed a 20-year sales and purchase agreement (SPA) with CNOOC Gas & Power, marking the first LNG supply agreement between a US exporter and China’s largest LNG importer.
Under the SPA, CNOOC Gas & Power, a unit of China National Offshore Oil Corp, will take 2mn mt/yr of LNG on a free-on-board basis from Venture Global’s 20mn mt/yr Plaquemines LNG facility in Louisiana and 1.5mn mt/yr of LNG, for a shorter duration, from Venture Global’s 10mn mt/yr Calcasieu Pass facility, also in Louisiana.
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“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,” Venture Global CEO Mike Sabel said. “China is critical to global climate efforts, and LNG supplied by Venture Global will serve as an important addition to their low carbon energy mix for decades. This new long-term partnership with CNOOC builds on our company’s continued momentum in a very active 2021.”
Shi Ghenggang, CNOOC Gas & Power’s chairman, said the long-term cooperation with Venture Global underpins the country’s climate goal of reaching carbon neutrality by 2060.
“By signing the SPAs with Venture Global, CNOOC will be able to further improve its ability to meet China’s increasing gas demand, whilst providing solid support for China’s energy transition pathway to build a more ‘beautiful’ China,” he said.
Calcasieu Pass has been under construction since late 2019. Financial close for Plaquemines is expected in Q4 2021, according to Venture Global's website.