Venture Global LNG announced that it has started the execution of a 20-year sales and purchase agreement (SPA) signed with CNOOC Gas & Power Group, which is wholly owned by China Offshore Oil Corporation (CNOOC).

Venture Global elaborated that this is the first liquefied natural gas (LNG) supply agreement signed by a US exporter with CNOOC.

According to the agreement, Venture Global will provide 2 million tons per annum (MTPA) of LNG on a free on board (FOB) basis. Additionally, CNOOC will purchase 1.5 million tons of LNG from the other company’s Calcasieu Pass LNG facility on a short-term basis.

“China is critical to global climate efforts, and LNG supplied by Venture Global will serve as an important addition to their low carbon energy mix for decades,” said Mike Sabel, chief executive of Venture Global.

For his part, Shi Chenggang, Chairman of CNOOC Gas & Power, said “As China’s largest LNG importer, CNOOC is committed deeply not only to the mission of securing China’s gas supply, but also to the climate goals of building a carbon-neutral China by 2060.”