C0914, C0915.?

Venture - China Gas holding, 2027, 20 years, 1 mtpa.?Plaquemines LNG

Venture - China Gas?holding, 2027, 20 years, 1 mtpa.?CP2 LNG.

1.?https://www.theadvocate.com/acadiana/news/business/venture-global-lng-signs-new-deals-with-china-gas/article_00e0e50e-b469-11ed-8f8d-b706911203d3.html

Venture Global LNG has signed two 20-year liquefied natural gas supply deals with a China gas company, its sixth announcement of a contract with an Asian buyer.

The latest contracts call for Venture Global LNG to supply a total of 2 million metric tons annually to China Gas Hongda Energy Trading Co. Ltd., a subsidiary of China Gas Holdings Limited. China Gas is one of the largest natural gas pipeline and transportation companies in China.

Of that total, 1 million will come from Venture Global LNG’s Plaquemines LNG facility in Plaquemines Parish, and the other 1 million will ship from the company’s CP2 LNG terminal in Cameron Parish.

Plaquemines LNG has been under construction since August 2021 and is expected to come online in 2024. Construction on CP2 LNG, which will sit next to the company’s existing Calcasieu Pass LNG terminal, is expected to start sometime this year.

Of the 17 contracts Venture Global LNG has announced since revealing?its first Louisiana LNG project in 2014, six were with buyers in Asian markets, according to company announcements. This is Venture Global LNG’s?second deal with a company in China. It also has buyers in Europe and the U.S.

Though U.S. LNG shipments to Europe increased last year, Asia has historically been the top destination for American exports of the commodity.

Since the United States began shipping LNG overseas in 2016, three of the top five markets for exports have been in Asia, according to the U.S. Department of Energy. Leading the way is South Korea with 12.6% of total U.S exports since 2016, followed by Japan at 9.2%. China is fifth at 7.2%.

Industry insiders have said?European shipments for U.S. LNG should still be strong in 2023, though the path of future cargos could be influenced by fluctuating demand in Asia, where demand slipped amid a mild winter and significant COVID-19 lockdowns.

Updates with details, background

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SINGAPORE, Feb 24 (Reuters)?-?Chinese gas distributor China Gas Holdings?0384.HK?said on Friday it agreed to two 20-year liquefied natural gas (LNG) supply contracts with U.S. exporter Venture Global.

China Gas Holdings, via its wholly-owned subsidiary China Gas Hongda Energy Trading Co, will buy a total of two million tonnes per year of LNG from Venture Global under the two contracts, the company said in a statement. The contracts will begin from 2027, a company executive told Reuters.

The LNG supply would come from Venture Global's two LNG projects in Louisiana, Plaquemines LNG and the CP2 LNG. The projects would each supply one million tonnes of LNG per annum to China Gas, according to the statement from China Gas.

China Gas Holdings had?last June?signed a deal with U.S. firm Energy Transfer to receive 0.7 million tonnes of LNG a year on a free-on-board basis for 25 years. The first deliveries are expected to start in 2026.

In 2021, Venture Global also inked?several large deals?with firms in China, who ranked as the world's top LNG importer that year. It signed a 20-year deal with state oil giant Sinopec for 4 million tonnes of LNG per year, and agreed to provide 3.8 million tonnes of supplies per year to Unipec, a subsidiary of Sinopec.

Venture Global also?signed?a 20-year deal to sell 2 million tonnes of LNG per year to a unit of China National Offshore Oil Corp (CNOOC).

3.?

Venture Global LNG will supply China Gas Holdings with LNG from its Plaquemines LNG and CP2 LNG sites in Louisiana, under a 20-year-long sales and purchase agreement.

Under the deal, China Gas will purchase two million tonnes per annum of LNG from Venture Global. One million tonnes per annum will be supplied from Plaquemines LNG and another from the CP2 LNG export facility.

Liu Minghui, Chairman and President of China Gas Holdings, said the deal increases the company’s LNG portfolio and will help supply customers with low-carbon LNG.

Mike Sabel, CEO of Venture Global LNG, highlighted the importance of supporting energy security and environmental progress in both Asia and Europe.

He said, “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.”

News of the deal follows publication of the Shell LNG Outlook 2023 report, that said Europe and China will compete for limited LNG volumes amid continuing market volatility in the near term.

The report expects the global LNG market to remain tight and exposed to supply and demand shocks, with limited new supply coming online. This means more investment in supply will be needed to meet future LNG demand.

Data from the paper also states that new US liquefaction capacity helped balance global LNG supply. That said, it notes that the growing role of US supply in the global LNG market increases exposure to US gas market risks, with more than 95% of 2030 capacity concentrated in two states.

Read more:?Europe and China to ‘compete’ for limited LNG volumes

Venture Global’s Plaquemines LNG export facility is located in Plaquemines Parish, Louisiana, approximately 20 miles south of New Orleans. When fully developed, Plaquemines LNG will have an export capacity of up to 20 million metric tonnes per year.

Venture Global CP2 LNG and Venture Global CP Express, both wholly owned subsidiaries of Venture Global LNG, are proposing to build, own and operate the CP2 LNG Project on an approximately 546-acre site in Cameron Parish, Louisiana.

CP2 LNG will build, own and operate the LNG terminal with a nameplate liquefaction capacity of 20 million metric tonnes per annum of LNG and a peak capacity of approximately 24 metric tonnes per annum.