Venture Global reaches 3.5-million tpy supply contract with CNOOC

Dec. 22, 2021
Venture Global LNG Inc. and CNOOC Gas & Power Group Co. Ltd. have executed a 3.5-million tonne/year LNG sales and purchase agreement.

Venture Global LNG Inc. and CNOOC Gas & Power Group Co. Ltd., a wholly owned subsidiary of China National Offshore Oil Corp. (CNOOC), have executed a 3.5-million tonne/year (tpy) LNG sales and purchase agreement. Venture Global describes the deal as the first LNG supply agreement signed by a US exporter with CNOOC, China’s largest importer of LNG.

Under the deal, Venture Global will supply 2 million tpy for 20 years from its 20-million tpy Plaquemines LNG liquefaction plant in Plaquemines Parish, La., on a free on board (FOB) basis. CNOOC will also purchase 1.5 million tpy from Venture Global’s 10-million tpy Calcasieu Pass plant for a shorter duration.

Venture Global earlier this month received US Federal Energy Regulatory Commission permission to start Block 2 (1.2 million tpy) commissioning at Calcasieu Pass. First production from Plaquemines LNG is expected in 2024 (OGJ Online, Dec. 14, 2021).

CNOOC is adding to its import capacity with a new terminal under construction at Yancheng-Binhai port, Jiangsu province. The terminal’s 3-million tpy Phase 1 will be complete in 2022, including four 220,000-cu m full-containment LNG tanks.