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[BUSINESS] · United States, China · 10 sources

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China Gas Holdings signs 20-year U.S. LNG supply deal

China Gas Holdings has signed a 20-year agreement to purchase 500,000 metric tons of liquefied natural gas (LNG) annually from the American exporter Venture Global, starting in 2030. This new contract increases China Gas Holdings’ total long-term commitment to Venture Global to 2.5 million metric tons per year.

The deal proceeds despite a 15% Chinese tariff on U.S. LNG. While China has suspended an additional 24% tariff on other American goods for one year, the specific levy on U.S. natural gas remains in place. The agreement comes ahead of an expected state visit by Chinese President Xi Jinping to Washington later this month.

Venture Global intends to supply the gas from its Louisiana-based operations, including the Calcasieu Pass and Plaquemines export plants, as well as the CP2 project currently under construction. Liu Ming Hui, chairman and president of China Gas, stated the move reinforces the company’s commitment to establishing an international energy trading platform.

Entities

China Gas Holdings · Liu Ming Hui · Louisiana · Venture Global · Xi Jinping

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