Venture Global LNG has announced the execution of a 20-year Sales and Purchase Agreement (SPA) with CNOOC Gas & Power Group Co., Ltd.
The deal marks the first LNG supply agreement signed by a U.S. exporter with CNOOC, Venture Global highlighted. Under the deal, Venture Global will supply two million tons per annum of LNG on a free on board basis from its Plaquemines LNG export facility, in Plaquemines Parish, Louisiana, the company outlined. In addition, CNOOC Gas & Power will purchase 1.5 million tons of LNG from Venture Global’s Calcasieu Pass LNG facility for a shorter duration, Venture Global revealed.
“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 U.S. LNG,” Mike Sabel, the chief executive officer of Venture Global LNG, said in a company statement.
“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,” Sabel added in the statement.