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China’s Largest LNG Importer CNOOC Signs Sale and Purchase Agreement for U.S. Gas

Mike Schuler
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December 21, 2021

Arlington, Virginia-based Venture Global LNG has announced signing 20-year LNG Sales and Purchase Agreement with a subsidiary of China National Offshore Oil Corporation (CNOOC), China’s largest LNG importer.

Under the deal, Venture Global will supply 2 million tonnes per annum (MTPA) of LNG on a “free on board” (FOB) basis from its proposed Plaquemines LNG export facility, in Plaquemines Parish, Louisiana. In addition, the CNOON business, CNOOC Gas & Power Group, will purchase 1.5 million tonnes (MT) of LNG from Venture Global’s Calcasieu Pass LNG facility, which is under development in Cameron Parish, Louisiana, “for a shorter duration.”

The Plaquemines LNG export facility is a proposed deepwater facility located on the Mississippi River approximately 20 miles south of New Orleans

The deal marks the first LNG supply agreement signed by a U.S. exporter with CNOOC.

“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 provide solid support for China’s energy transition pathway to build a more “beautiful China”.

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