US LNG exporter Venture Global LNG has signed two long-term liquefied natural gas supply deals with China Gas.
Under the two sales and purchase agreements, China Gas Hongda Energy Trading, a unit of the Chines natural gas operator, will buy LNG from two Venture Global’s projects for a period of 20 years.
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 mtpa from the CP2 LNG export facility, both in Louisiana, according to a statement by Venture Global.
Liu Minghui, chairman and president of China Gas, said in the statement that these two SPAs increase additional volume for the company’s LNG portfolio and strengthen China Gas’s supply ability.
“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,” Venture Global’s CEO, Mike Sabel, said.
Venture Global is already exporting LNG from its Calcasieu Pass plant in Louisiana, while the company took a final investment decision last year on the first phase of the Plaquemines project with a capacity of 13.3 mtpa and the related pipeline.
The company previously said it had executed the majority of the 20-year sales and purchase agreements (SPAs) for 80 percent of the full 20 mtpa project, including the second phase.
As per CP2 LNG, Venture Global said in 2021 it would invest more than $10 billion in the LNG project which would be located next to its Calcasieu Pass liquefaction plant in Louisiana.
CP2 LNG includes a terminal with a nameplate liquefaction capacity of 20 mtpa and a peak capacity of about 24 mtpa, and Venture Global expects to start construction on its third project in 2023.
The firm already signed several deals for this project, including the latest with Japan’s Inpex.