China Gas Signs 20-Year Long-Term LNG Purchase and Sale Agreement with Venture Global

en.Wedoany.com Reported - On September 14, China Gas Trading BU's subsidiary Zhongran Hongda Energy Trading Co., Ltd. signed a long-term LNG purchase and sale agreement with Venture Global's subsidiary Venture Global CP2 LNG, LLC. Under the agreement, Venture Global will supply 500,000 tonnes per annum of LNG to China Gas on an FOB basis through its global LNG resource pool, with a term of 20 years and first delivery expected to commence as early as 2030. The purchase price is linked to the U.S. Henry Hub natural gas benchmark price, plus a fixed liquefaction fee.

Following this signing, China Gas's long-term LNG agreement resource pool will increase from approximately 3 million tonnes per annum to 3.5 million tonnes per annum. China Gas recently disclosed that it has secured approximately 3 million tonnes per annum of international LNG resources through multiple long-term FOB purchase agreements and has established an international trading center in Singapore to participate in global LNG and LPG trading. The additional 500,000 tonnes per annum represents an increase of approximately 16.7% to its existing long-term LNG resource pool.

China Gas and Venture Global had already established a long-term LNG procurement relationship. In 2023, the two parties signed two 20-year purchase and sale agreements, corresponding to the Plaquemines LNG and CP2 LNG projects respectively, each with an annual procurement volume of 1 million tonnes, totaling 2 million tonnes per annum. With the addition of 500,000 tonnes per annum, the disclosed long-term LNG procurement scale between China Gas and Venture Global has increased to 2.5 million tonnes per annum.

Although Venture Global CP2 LNG, LLC is the contracting entity for this agreement, the agreement adopts Venture Global's global resource pool supply arrangement, and the first delivery is not directly locked to a single CP2 production line. Under the FOB model, China Gas needs to arrange its own vessel capacity, take delivery from Venture Global's designated loading port, and bear subsequent international transportation, so its LNG fleet construction is directly linked to this new long-term agreement.

China Gas has already been building ocean-going transportation capacity for long-term FOB resources. The company previously cooperated with Wah Kwong Maritime Transport and CSSC Leasing to advance a 175,000 cubic meter LNG carrier project at Dalian Shipbuilding, one of which is scheduled for official delivery in mid-2027 and will be leased by Zhongran Hongda Energy Trading Co., Ltd. for 20 years after delivery, primarily undertaking China Gas's medium- and long-term FOB international LNG resource transportation tasks. The vessel is equipped with dual-fuel low-speed main engines and 4 dual-fuel generators, and can dock at most large LNG receiving and loading facilities worldwide.

Venture Global's CP2 LNG project is located in Cameron Parish, Louisiana, United States. The U.S. Department of Energy has approved its LNG exports to free trade agreement countries and non-free trade agreement countries, and the Federal Energy Regulatory Commission has previously authorized the project's construction. Venture Global's latest disclosure shows that the CP2 project has a peak production capacity of approximately 29 million tonnes per annum, and long-term contracts currently cover nearly all of its nameplate capacity.

As of the second quarter of 2026, the main construction of CP2 is still underway. Venture Global disclosed that 16 liquefaction modules have arrived on site, all 4 LNG storage tanks have completed roof structure lifting, and 5 gas turbines and steam turbines have been installed in their foundation positions. The project is still planned to produce first LNG in the second half of 2027. The company is also advancing the CP2 brownfield expansion project, with the expansion portion planned to reach a final investment decision in early 2027 after obtaining regulatory approval, and aiming to begin production by the end of 2028.

Venture Global completed the final investment decision for CP2 Phase 2 in 2026 and secured $8.6 billion in project financing for Phase 2, bringing CP2's cumulative financing scale to $20.7 billion. Once completed, the project will become Venture Global's third large-scale U.S. LNG export facility after Calcasieu Pass and Plaquemines.

China Gas is also currently developing LNG receiving terminal windows, pipeline capacity booking, gas storage facilities, and terminal sales systems domestically. The company disclosed that its natural gas trading business has formed a distribution network covering 29 provinces, autonomous regions, and municipalities, while also participating in the Guangxi LNG Phase III expansion and the Shandong Yantai West Port LNG project, and has signed a medium- and long-term receiving terminal window usage agreement with PipeChina. With the addition of this new U.S. FOB long-term agreement, its international procurement, ocean-going transportation, domestic receiving, and terminal sales chains have further formed a corresponding relationship.