China National Offshore Oil Corporation (CNOOC) has tied up a new 20-year sale and purchase agreement to import LNG from a US exporter
The newest addition to the growing list of US LNG export deals to China will see Venture Global supply 2 mta of LNG on a free on board basis from its Plaquemines LNG export facility in Louisiana.
In addition, CNOOC Gas & Power will purchase 1.5 mta of LNG from Venture Global’s Calcasieu Pass facility for a shorter duration. The deal marks the first supply agreement signed by a US exporter with CNOOC, China’s largest importer of LNG.
Venture Global chief executive Mike Sabel said, "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.
“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.”
In November, the company signed an even larger long-term export deal with Sinoepc.
CNOOC Gas & Power chairman Shi Chenggang added, “We are pleased to announce our long-term LNG co-operation 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, while providing solid support for China’s energy transition pathway.”
The orderbook for LNG carriers has approached historic levels according to Clarksons, with China’s appetite being a contributing factor. The rapidly expanding market for natural gas has seen other US firms like Cheniere close deals with Chinese buyers.
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