China Gas Holdings and Venture Global Expand US LNG Deal Amid China's Declining Demand

China Gas Holdings and Venture Global have signed a new sale and purchase agreement (SPA) for an additional 0.5 million tonnes per year (MTPA) of liquefied natural gas (LNG) from America, bringing the combined contracted volume between the two groups to 2.5 MTPA.

The agreement is set to run for 20 years and will see deliveries begin in 2030. This new deal comes on top of two existing SPAs between the companies, covering 1 MTPA from the Plaquemines LNG terminal and 1 MTPA from the CP2 LNG terminal.

The agreement is significant as it takes place amidst a backdrop of China's declining LNG imports. Chinese customs data shows that total LNG imports fell to 68.43 million tonnes over the past year, down 10.6% year-on-year.