CNOOC Gas & Power signed a 20-year SPA with Venture Global LNG2 min read
CNOOC Gas & Power Group Co., Ltd. has entered into the 20-year Sales and Purchase Agreement (SPA) with the US LNG exporter Venture Global LNG.
Venture Global pointed out that China is the core part of the world’s GHG emissions (greenhouse gases emissions) goal. In line with that, Venture Global commits to supply clean energy LNG with lower carbon emissions to the decade of the mix of fuel options. Previously Venture Global has signed an LNG supply contract with China Petroleum & Chemical Corporation (Sinopec) for a period of 20 years.
The cooperation marks the first time a US exporter signed an LNG support agreement with CNOOC, China’s largest importer of LNG. Under the agreement, Venture Global will supply 2 million tonnes per annum (MTPA) of LNG on a free on board (FOB) basis from its Plaquemines LNG export facility, in Plaquemines Parish, Louisiana.
Furthermore, 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, Chief Executive Officer of Venture Global LNG. “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.”
“As China’s largest LNG importer, CNOOC is committed deeply not only to the mission of securing China’s gas supply, but also to the climate goals of building a carbon-neutral China by 2060,” said Shi Chenggang, Chairman of CNOOC Gas & Power. “We are pleased to announce our long-term LNG cooperation with Venture Global. 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”.
In early October, Shandong Port Group announced that the company is speeding up the construction of world-class seaports to build a “Beautiful China”.