Venture Global LNG, a Virginia-based low-cost producer of U.S. liquified natural gas (LNG), has signed two 20-year LNG sales and purchase agreements (SPA) with China Gas Hongda Energy Trading, a subsidiary of Chinese natural gas operator China Gas Holdings.
As per the SPAs, China Gas will purchase 1 million tons per annum (MTPA) of LNG from Venture Global's Plaquemines LNG and another 1 MTPA from the CP2 LNG export facility, both located in Louisiana.
“As a major participant in China's energy market, we are committed to providing reliable and low-carbon LNG to Chinese customers,” Liu Minghui, Chairman and President of China Gas Holdings, said. “These two SPAs increase additional volume for our LNG portfolio and strengthen China Gas’s supply ability. We look forward to working with Venture Global over the coming years to help further reduce greenhouse gas emissions.”
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“Venture Global is pleased to welcome China Gas as a customer both at Plaquemines and CP2,” Mike Sabel, Chief Executive Officer of Venture Global LNG, said. “Importantly, low-cost LNG supplied to the region will accelerate fuel switching and lower carbon emissions, contributing meaningfully to China and the world’s existing climate targets.”
Venture Global’s first facility, Calcasieu Pass, commenced producing LNG in January 2022. The company is also constructing or developing an additional 60 MTPA of production capacity in Louisiana to provide clean, affordable energy to the world. Additionally, it is developing carbon capture and sequestration projects at each of its LNG facilities.
Driven by demand from Europe during the Russia-Ukraine war and other factors, U.S. LNG exports rose to about 50 billion cubic meters in 2022, mostly liquified and shipped from the Gulf Coast terminals. LNG is created by taking in U.S. natural gas production, chilling to extreme cold temperators to liquify the gas and make it stable for shipping.
