Sinopec and Venture Global LNG have announced the signing of two 20-year Sales and Purchase Agreements (SPA) for the supply of a total of 4 million tonnes per annum (MTPA) of LNG.
from Venture Global's Plaquemines LNG export facility, in Plaquemines Parish Louisiana. In addition, UNIPEC, a Sinopec subsidiary has agreed to purchase 3.5 million tonnes (MT) of LNG from Venture Global's Calcasieu Pass LNG facility for a shorter duration. This represents the largest single LNG supply deal ever signed by a US company and will double exports of US LNG to China.
"Sinopec has been pursuing low-carbon, green, safe, responsible and sustainable development, seeking high quality growth of its natural gas business," said Ma Yongsheng, President of Sinopec Corp. "We are committed to building capacity in providing clean energy and meeting peoples aspiration for better life. The signing of this LNG SPA reflects the shared mission of Sinopec and Venture Global in promoting the global energy transition and is of significance in achieving carbon emission peak and neutrality goals."
"Venture Global is proud to enter into this new and exciting long-term partnership with Sinopec, and soon become the largest US LNG exporter to China," said Mike Sabel, Chief Executive Officer of Venture Global LNG. "Today's announcement will accelerate our combined efforts to lower carbon emissions and provide a low-cost, reliable and secure energy supply to China. From day one, Venture Global has been on a mission to drive fuel switching around the world from coal to natural gas, and we are thrilled to equip Sinopec with a large supply of US LNG to do that and assist China in its energy transition."
Venture Global is a long-term, low-cost provider of U.S. LNG to be sourced from resource rich North American natural gas basins. Venture Global is currently constructing or developing multiple export facilities in Louisiana to provide clean, affordable energy to the world.