Venture Global LNG pens long-term supply deals with China’s Sinopec

US liquefaction plant developer Venture Global LNG has signed two long-term liquefied natural gas supply deals with China’s state-controlled energy giant Sinopec.

Under the first LNG sales and purchase agreement, Venture Global LNG would supply about 2.8 mtpa for a primary term of twenty 20 years to Sinopec from the planned Plaquemines LNG project in Louisiana.

Venture Global Plaquemines LNG, a unit of Venture Global LNG, revealed this in a status report sent to the Department of Energy (DOE) on October 1.

As per the second LNG SPA, Venture Global LNG would deliver 1.2 mtpa to Sinopec from the Plaquemines project, also for a primary term of 20 years, the report said.

Besides these two deals, Venture Global also signed a smaller deal with Unipec, a unit of Sinopec.

Under this deal, Venture Global LNG would deliver about 1 mtpa for a period of three years from its Calcasieu Pass project, according to a separate status report sent to US DOE.

LNG Prime contacted Venture Global LNG to comment on the new agreements. A spokesperson for Venture Global LNG declined to comment.

Preliminary work underway, full operations in 2024

Venture Global LNG recently said it had started works to prepare the construction site for its Plaquemines LNG project.

Plaquemines LNG would deploy Venture Global LNG’s liquefaction trains 19 through 36, the same as the 18 trains at its Calcasieu Pass project which is nearing first exports.

The full Plaquemines project would have 20 mtpa capacity, four tanks, and three jetties, but the firm plans to build the project in stages.

However, Venture Global LNG has still to take a final investment decision on the development.

Earlier this year, Venture Global LNG said compatriot Zachry Group had joined KBR to build its Plaquemines LNG project.

The firm selected engineer KBR as the lead contractor for the LNG export development in November last year.

Additionally, Plaquemines LNG has binding 20-year offtake agreements with Poland’s PGNiG for 4 mtpa and France’s EDF for 1 mtpa capacity.

Venture Global LNG has recently signed a deal with PGNiG to boost the volumes from both the Plaquemines and the Calcasieu Pass projects.

The US firm plans to start full operations at the Plaquemines project in the middle of 2024.

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