USA: Venture Global to become America’s top LNG exporter to China through Sinopec deal
Both companies have signed two 20-year Sale and Purchase Agreements that will double US LNG imports to China.
Venture Global LNG and China Petroleum & Chemical Corp. (Sinopec) have announced the signing of two 20-year Sales and Purchase Agreements,the largest single LNG supply deal ever signed by a US company. The contracts state that the North American-based company will supply the Chinese firm with a total of 4 million tonnes per annum of LNG via its Plaquemines LNG export facility and 3.5 million tonnes of LNG from Venture Global’s Calcasieu Pass LNG facility to UNIPEC, a Sinopec subsidiary.
“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. Today’s announcement will accelerate our combined efforts to lower carbon emissions and provide a low-cost, reliable and secure energy supply to China,” commented Mike Sabel, Chief Executive Officer of Venture Global LNG.
“Sinopec has been pursuing low-carbon, green, safe, responsible and sustainable development, seeking high quality growth of its natural gas business. 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,” added Sinopec Corp.’s President, Ma Yongsheng.
The agreements mark a huge leap in energy relations between American and Chinese companies. This announcement has allied the long-term, low-cost provider of US LNG with China Petrochemical Corporation (Sinopec Group), the world’s largest oil refiner and second largest chemical company. Venture Global has stated that through this deal, imports of US LNG to China will double.
