Venture Global and China Gas Sign Two 20-year Long-Term LNG Agreements

Venture Global LNG and China Gas Holdings Limited have finalized two significant LNG Sales and Purchase Agreements (SPA) for up to 2 million tonnes per year.

Rhea-AI Summary

Venture Global LNG and China Gas Holdings Limited have finalized two significant LNG Sales and Purchase Agreements (SPA) for up to 2 million tonnes per year. The agreements, effective for 20 years, involve China Gas purchasing 1 million tonnes of LNG from the Plaquemines LNG facility and another 1 million tonnes from the CP2 LNG facility in Louisiana. This expansion strengthens China Gas's LNG portfolio and supply capabilities, while Venture Global aims to enhance energy security and support climate goals.

Positive

• Signing of two long-term LNG supply agreements with China Gas strengthens market position.
• Increased LNG supply of 2 million tonnes per year enhances revenue potential.
• Support for China's energy market and climate targets through low-cost LNG.

Negative

• None.

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Deal Ensures Two Million Tonnes of LNG Supply per Year

ARLINGTON, Va., Feb. 23, 2023 /PRNewswire/ -- Today, Venture Global LNG and China Gas Holdings Limited ("China Gas" or the "Group"; stock code: 384), a leading natural gas operator in China, announced that the wholly-owned subsidiary China Gas Hongda Energy Trading Co., LTD ("China Gas Hongda") and Venture Global LNG ("Venture Global"), have signed two 20-year LNG Sales and Purchase Agreements (SPA). 

Under the deals, China Gas will buy 1 million tonnes per annum (MTPA) of LNG on a free on board (FOB) basis from Plaquemines LNG and another 1 MTPA from the CP2 LNG export facility, both in Louisiana. 

Mr. Liu Minghui, Chairman and President of China Gas Holdings Co. Ltd., said "As a major participant in China's energy market, we are committed to providing reliable and low-carbon LNG to Chinese customers. 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."

Mike Sabel, Chief Executive Officer of Venture Global LNG said, "Venture Global is pleased to welcome China Gas as a customer both at Plaquemines and CP2. 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."

About Venture Global
Venture Global is a long-term, low-cost provider of U.S. LNG sourced from resource rich North American natural gas basins. 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. The company is developing Carbon Capture and Sequestration (CCS) projects at each of its LNG facilities.

About China Gas
China Gas Holdings Limited ("China Gas", HKEX: 00384) is one of China's largest trans-regional, integrated energy suppliers and service providers. Focusing on China, it is primarily engaged in the investment, construction, and operation of city and township gas pipelines, gas terminals, storage and transport facilities, and logistics systems, delivering natural gas and LPG to residential, industrial, and commercial users. The Group also builds and operates CNG/LNG fueling stations while developing and applying natural gas and LPG technologies. In addition, it has drawn on its extensive gas user base to form a comprehensive business portfolio of value-added services, urban heating, new energy, electricity distribution and sales, and charging stations.

View original content:https://www.prnewswire.com/news-releases/venture-global-and-china-gas-sign-two-20-year-long-term-lng-agreements-301755139.html

SOURCE Venture Global LNG

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the significance of the LNG agreements between Venture Global and China Gas Holdings Limited?

The agreements will supply China with 2 million tonnes of LNG annually, reinforcing both companies' market positions and supporting energy security.

How long are the LNG sales agreements between Venture Global and China Gas?

The LNG Sales and Purchase Agreements are set for a duration of 20 years.

What facilities are involved in the LNG supply to China Gas?

The LNG supply will come from Plaquemines LNG and CP2 LNG export facilities in Louisiana.

How does this deal impact China's energy market?

The deal enhances China Gas's ability to supply reliable and low-carbon energy, contributing to China’s energy diversification and climate goals.

What are the expected outputs from the LNG agreements for Venture Global?

Venture Global anticipates increased capacity in the global LNG market, benefiting from the steady revenue stream provided by the agreements.