Sinopec has signed two 20-year sales and purchase agreements (SPAs) with Venture Global for the supply of 4 million tpa of LNG from Venture Global’s Plaquemines LNG export facility in Louisiana.
Meanwhile, Sinopec subsidiary Unipec has signed an SPA for 3.5 million TPA of LNG from Venture Global’s 10 million tpa Calcasieu Pass LNG facility, also in Louisiana. Together, the three contracts represent the largest single LNG supply deal ever signed by a US company, doubling imports of US LNG to China.
Venture Global will now become the largest LNG exporter to China.
Venture Global’s Plaquemines site is on the Mississippi River with deep-water access and will have an export capacity when complete of 20 million tpa.
In February 2021, the company secured a $500 million loan with several leading banks to fund development of the facility. Construction on the Calcasieu Pass facility began in 2019 and operations are expected to begin in Q1 2023.
“Sinopec has been pursuing low-carbon, green, safe, responsible and sustainable development, seeking high quality growth of its natural gas business. 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,” said Ma Yongsheng, president of Sinopec Corporation.
For more information visit www.sinopecgroup.com