China: China Gas Holdings, one of the biggest independent gas providers in China, recently sealed two 20-year agreements related to Liquefied Natural Gas (LNG) with U.S. exporter Venture Global. This series of deals is indicative of the increased trade relations between China and the United States since 2021.
China Gas Holdings is set to acquire two million tonnes of Liquified Natural Gas (LNG) per year from Venture Global. The supply from Venture Global will start in 2027 and is set to be purchased through its wholly owned subsidiary, China Gas Hongda Energy Trading Co.
China Gas, a subsidiary of China National Offshore Oil Corporation (CNOOC), announced today that they have signed agreements to receive 1 million tonnes of liquified natural gas (LNG) per year from two different Louisiana-based Venture Global projects – Plaquemines LNG and the CP2 LNG.
Most United States liquid natural gas (LNG) export agreements with China were established on a free-on-board basis and priced according to the US standard, the Henry Hub gas market. These contracts gave buyers the decision to either bring the fuel into China or to trade it in any global market of their choice.
China Gas Holdings recently signed a deal with U.S. firm Energy Transfer, through which they will receive 0.7 million tonnes of LNG every year for 25 years, starting in 2026.
In 2021, Venture Global closed several substantial deals with businesses in China, making it the top importer of LNG that year. The company signed a 20-year agreement to supply Sinopec, a state oil firm, with 4 million tonnes of LNG each year and further committed to providing Unipec, a Sinopec subsidiary, with 3.8 million tonnes annually.
In 2021, Venture Global made a ground-breaking agreement with a unit of China National Offshore Oil Corp (CNOOC) to sell two million tonnes of LNG every year for the next twenty years.
The company executive stated that China Gas does not have any regasification terminals within China, but they can lease receiving facilities from state firms that are dominated by the government and those operated by PipeChina, a national gas infrastructure giant.