Venture Global LNG signs long-term LNG supply deal with Sinopec
U.S. LNG export project developer Venture Global has signed a deal with China Petroleum & Chemical Corporation (Sinopec) to provide China with four million tonnes of LNG a year for a period of 20 years.
The companies signed the contract on 4 November 2021.
Sinopec said the deal is the largest liquified natural gas trade agreement in volume between China and the U.S.
Specifically, Venture Global will provide China with four million tonnes of LNG per year for 20 years. It will supply it from its Plaquemines export terminal in Louisiana.
Also, Unipec, a trading arm of Sinopec, will buy 3.5 million tonnes of clean fuel from Venture Global’s Calcasieu Pass facility on a shorter-term basis.
Thus, Venture Global becomes the largest US liquified natural gas exporter to China.
Ma Yongsheng, president of Sinopec, said that the company has always insisted on a low-carbon and green development strategy.
“The LNG contract with Venture Global LNG reflects the two companies’ high consensus on supporting the global energy transformation and realizing the “dual carbon” goals of reaching peak carbon and achieving carbon neutrality.”
Mike Sabel, CEO of Venture Global, sees cooperation as a way to speed up carbon emissions reductions. It will also provide low-cost, reliable, and safe clean energy to China.
On the other hand, Venture Global is a key LNG supplier in the Gulf of Mexico region in the U.S.