China’s CNOOC signs maiden US LNG deals with Venture Global

China’s CNOOC signs maiden US LNG deals with Venture Global

US-based Venture Global LNG has signed a pair of liquefied natural gas (LNG) supply deals with China National Offshore Oil Corporation (CNOOC). Significantly, the move underscores China’s increasing appetite for US LNG and it marks the first LNG supply agreement signed by a US exporter with CNOOC, China’s largest importer of LNG.

Under the first deal the US exporter will supply China’s largest importer of LNG with 2 million tonnes per year (t/y) of the fuel for 20 years. Venture Global will supply the LNG from its proposed Plaquemines Parish export termina in Louisiana to CNOOC Gas & Power Group. The US government granted Venture Global approval to start early site works at the project earlier this year.

In addition, CNOOC Gas & Power will buy 1.5 million tonnes of LNG from Venture Global’s Calcasieu Pass LNG facility, under construction in Louisiana, for a shorter duration, the pair said on Monday.