Venture Global and China’s national oil company, China National Offshore Oil Corporation (CNOOC), announced the execution of a 20-year Sales and Purchase Agreement (SPA). CNOOC will import 2 million metric tons of LNG on a free on board (FOB) basis from Venture Global Plaquemines LNG facility, located in Plaquemines Parish, Louisiana (pictured above). In addition, CNOOC will also purchase 1.5 million metric tons of LNG from their Calcasieu Pass LNG facility, located in Cameron Parish, Louisiana.
* FOB is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. “FOB shipping point” or “FOB origin” means the buyer is at risk once the seller ships the product. The purchaser pays the shipping cost from the factory and is responsible if the goods are damaged while in transit. “FOB destination” means the seller retains the risk of loss until the goods reach the buyer.