GLNG: Venture Global strikes supply deal with CNOOC

The US’ Venture Global LNG announced in late December that it had struck a deal to supply LNG to a subsidiary of China National Offshore Oil Corp. (CNOOC).
This marks the first LNG supply agreement signed between CNOOC and a US exporter of the fuel.
Under the 20-year sales and purchase agreement (SPA), Venture Global will supply 2mn tonnes per year (tpy) of LNG to CNOOC from its planned Plaquemines export terminal in Louisiana. Additionally, CNOOC will buy 1.5mn tpy of LNG from Venture Global’s Calcasieu Pass facility for a “shorter duration”, the US company said.
Calcasieu Pass, which is also located in Louisiana, is currently undergoing commissioning ahead of commercial service starting early this year. Meanwhile, initial construction work has started at the Plaquemines LNG site, though a final investment decision (FID) on that project has yet to be announced.
CNOOC is China’s largest importer of LNG. Venture Global also recently struck two 20-year SPAs, for 4mn tpy in total, with another Chinese company, Sinopec, as well as a separate 3.5mn tpy deal with Sinopec subsidiary Unipec covering a shorter duration.
Both the Sinopec and CNOOC deals illustrate the return of Chinese interest in buying US LNG after trade between the two stalled amid a trade war. Chinese purchases of US LNG resumed followed the onset of the coronavirus (COVID-19) pandemic and are now rising to record highs.