Venture Global and China Gas have executed a new 20-year sales and purchase agreement for 0.5 million tonnes per annum of U.S. LNG beginning in 2030, increasing their combined long-term contracted volume to 2.5 MTPA.
Published by Allstream Insiders
Allstream Insiders Summary
Venture Global and China Gas Holdings Limited have executed a new Sales and Purchase Agreement, or SPA, for 0.5 million tonnes per annum of U.S. liquefied natural gas over 20 years beginning in 2030.
Venture Global said the new agreement increases its long-term offtake with China Gas to 2.5 MTPA under 20-year SPAs supplied across Venture Global’s portfolio. The announcement describes China Gas as a leading natural-gas operator in China.
The new SPA adds a defined long-term customer commitment to Venture Global’s LNG portfolio. Venture Global’s first three projects—Calcasieu Pass, Plaquemines LNG and CP2 LNG—are located in Louisiana along the Gulf of America.
What are the terms of Venture Global’s new China Gas LNG agreement?
China Gas has agreed to purchase 0.5 MTPA of U.S. LNG from Venture Global for 20 years starting in 2030. An SPA is the commercial agreement that sets out the purchase and sale of LNG between the supplier and buyer.
| Agreement detail | Company-reported information |
|---|---|
| Supplier | Venture Global |
| Buyer | China Gas Holdings Limited |
| Contracted volume | 0.5 million tonnes per annum of U.S. LNG |
| Term | 20 years |
| Start year | 2030 |
| Combined Venture Global-China Gas long-term offtake | 2.5 MTPA under 20-year SPAs |
How does the new SPA change Venture Global’s relationship with China Gas?
The agreement expands Venture Global’s existing long-term relationship with China Gas to 2.5 MTPA across 20-year SPAs. Venture Global said the contractual volume will be supplied from its portfolio, while China Gas said the agreement further strengthens its international energy-trading platform and access to global resources.
Mike Sabel, Venture Global’s chief executive officer, said the agreement expands the companies’ LNG partnership and supports China’s growing energy needs with U.S. LNG from Venture Global’s Louisiana projects.
Which Venture Global LNG projects are in Louisiana?
Venture Global identifies Calcasieu Pass, Plaquemines LNG and CP2 LNG as its first three LNG projects in Louisiana. The company said its integrated business includes LNG production, natural-gas transport, shipping and regasification assets.
The China Gas announcement says the new volumes will be supplied across Venture Global’s portfolio.
Allstream analysis: Why does the China Gas agreement matter?
The new SPA extends long-term U.S. LNG offtake into China and reinforces Venture Global’s commercial relationship with a major Chinese gas operator. The agreement adds 0.5 MTPA of contracted LNG demand beginning in 2030 and raises the companies’ reported combined long-term volume to 2.5 MTPA.
For the LNG market, the agreement adds a long-duration customer commitment to Venture Global’s portfolio and extends its contracted relationship with China Gas into 2030 and beyond.
