Venture Global LNG has sealed long-term liquefied natural gas supply deals with China’s Sinopec and its trading arm Unipec, said to be the largest single LNG contract by volume ever signed by a US company.
The deal, which will double imports of US LNG to China, will see Venture Global supply 4m tonnes of LNG annually to Sinopec for 20 years from the Plaquemines LNG export facility in Louisiana. In addition, Unipec has agreed to purchase 3.5m tonnes of LNG from Venture Global’s Calcasieu Pass LNG facility for a shorter duration.
“Venture Global will soon become the largest US LNG exporter to China,” said Mike Sabel, CEO 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.”
The deals were initially made public in a letter Venture Global filed with the US Department of Energy last month, under which Sinopec agreed to purchase 2.8m tonnes on a free-on-board basis and 1.2m tonnes on a delivered-at-place-unloaded basis. The companies did not specify the value of the deal or when supply would start.