China Gas, through its wholly-owned subsidiary China Gas Hongda Energy Trading, has signed two agreements to purchase liquefied natural gas (LNG) from Venture Global LNG.
Under the two 20-year sales and purchase agreements (SPAs), Venture Global LNG will supply one million tonnes of LNG per annum from each of the Plaquemines LNG and CP2 LNG projects to China Gas.
China Gas group president and chairman Liu Ming Hui said: “The SPAs signed with Venture Global will expand our natural gas resource pool and further enhance our supply capability. It has also promoted the steady development of the group’s clean energy business.”
Venture Global LNG plans to start the LNG supply to the Chinese firm in 2027, reported Reuters, citing a company executive.
Venture Global LNG CEO Mike Sabel said: ” Through relentless execution and innovation, our company will continue to bring much-needed new capacity to the global LNG market, supporting energy security and environmental progress both in Asia and Europe.
“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.”
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The Plaquemines LNG facility is expected to have an export capacity of up to 20 million metric tonnes per annum (Mtpa).
The CP2 LNG project will involves an LNG terminal with a liquefaction capacity of 20Mtpa. It will have peak capacity of approximately 24Mtpa.
In June 2022, China Gas signed a 25-year deal with US-based firm Energy Transfer to receive 0.7 million tonnes of LNG annually on a free-on-board basis.