China Gas Holdings, one of the leading non-state controlled companies in the Chinese city-gas and LNG sectors, said one of its subsidiaries signed a US LNG supply agreement with Venture Global for cargoes from Louisiana.
The Chinese company said its trading unit China Gas Hongda Energy Trading Co. signed two 20-year LNG Sales and Purchase Agreements (SPAs) for free-on-board (FOB) cargoes.
Under the deals, China Gas will buy 1 million tonnes per annum (MTPA) of LNG from the Plaquemines LNG project and another 1 MTPA from the CP2 LNG export facility to be constructed near Venture Global’s existing Calcasieu Pass export plant.
China Gas is involved in more than 600 projects in cities and towns with city-gas pipeline concessions, 17 natural gas pipeline transmission projects and operates over 550 LNG and compressed natural gas filling stations for vehicles.
“As a major participant in China’s energy market, we are committed to providing reliable and low-carbon LNG to Chinese customers,” said Liu Minghui, Chairman and President of China Gas.
Strengthens portfolio
“These two SPAs increase additional volumes for our LNG portfolio and strengthen China Gas’s supply ability,” stated Liu.
Michael Sabel, Chief Executive of Arlington, Virginia-based Venture Global said he was pleased to have the Chinese firm as a customer.
“Through relentless execution and innovation, our company will continue to bring much needed new capacity to the global LNG market, supporting energy security and environmental progress both in Asia and Europe,” declared Sabel.
China Gas has many subsidiaries and one of them was behind one the worst gas pipeline accidents in China in recent years and China Gas took full responsibility.
The explosion occurred in an area in Shiyan City in the northeast province of Hubei Province on the 13th of June 2021 and killed 25 people and left 27 others with serious injuries.
The pipeline system in Shiyan was the responsibility of one of the subsidiaries of China gas, Shiyan Dongfeng Zhongran City Gas Development Co.
However, China Gas accepted the blame and pledged to improve safety standards in the gas industry after an investigation by the provincial government exposed serious safety flaws.
The accident occurred when leaked natural gas from a pipeline gathered in the confined space underneath buildings and caused an explosion when coming into contact with sparks in fumes from nearby catering outlets.
The investigation into the incident exposed problems in the Chinese gas sector exacerbated by illegal construction, long-term failure to investigate gas leaks, chaotic property management and inefficient emergency responses to major incidents.
