Venture Global LNG and China’s CNOOC have reached an agreement on a 20-year contract for the sale of liquefied natural gas from Venture’s LNG export facilities in Louisiana.
In a statement released after the close of the markets Monday, Venture Global said the contract is the first signed by a US exporter with CNOOC, China’s largest importer of LNG. Under the terms of the agreement, Venture Global will provide CNOOC with 2 million tonnes per annum of LNG from its facility in Plaquemines Parish, Louisiana.
An additional 1.5 million tonnes of LNG will be purchased from Venture Global’s terminal at Calcasieu Pass, Louisiana, for a “shorter duration".
Mike Sabel, chief executive officer of Venture Global, said the company was excited to expand its export base into one of the world’s largest markets.
“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,” he said.
"This new long-term partnership with CNOOC builds on our company’s continued momentum in a very active 2021.”
Shi Chenggang, chairman of CNOOC subsidiary CNOOC Gas & Power, said LNG exports would be a key part of making China carbon neutral by 2060.
“We are pleased to announce our long-term LNG cooperation with Venture Global. By signing the SPAs (sales and purchase agreements) with Venture Global, CNOOC will be able to further improve its ability to meet China’s increasing gas demand, whilst provide solid support for China’s energy transition pathway to build a more ‘beautiful China’,” he said.
The agreement with CNOOC is a boost for the prospects of the Plaquemines Parish terminal, an $8.5 billion project currently under construction with first exports planned for 2024. Venture Global is planning to build four LNG export terminals in Louisiana, with Calcasieu Pass – the first and smallest of the four, with an export capacity of 10 million tpa – expected to export its first volumes in early 2022.
The three other facilities under development – Plaquemines, Delta and CP2 – are currently projected to have export capacity of 20 million tpa each.