US-based energy company Venture Global LNG (Venture) has signed an agreement with CNOOC Gas & Power Group Co. Ltd. (CNOOC) to supply the Chinese oil company with 2m tonnes per annum (MTPA) of liquefied natural gas (LNG).
The Sales and Purchase Agreement (SPA) will last for 20 years and marks the first LNG supply agreement signed by a US exporter with CNOOC.
LNG will be supplied from two different facilities: 2 MTPA on a free on board (FOB) basis from its Plaquemines LNG export facility in Louisiana, with CNOOC also purchasing 1.5m tonnes of LNG from Venture’s Calcasieu Pass facility for an unspecified shorter duration.
Mike Sabel, CEO, Venture, commented on the agreement, calling China ‘critical’ to global climate efforts.
“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,” he added.
Calling it an opportunity to ‘build a more beautiful China’, Shi Chenggang, Chairman, CNOOC, said that agreement will help the country meet its increasing gas demand.