US liquefaction plant developer Venture Global LNG has finally released an official statement regarding the three LNG supply deals it has signed with China’s Sinopec.
The three deals include a total supply of over 80 million tonnes of US LNG over the coming decades, Venture Global said in a statement on Thursday.
Venture Global said it has signed two 20-year sales and purchase agreements (SPA)
for the supply of a total of 4 million tonnes per annum of LNG from its Plaquemines LNG export facility Louisiana.
In addition, Unipec, a Sinopec subsidiary has agreed to purchase 3.5 million tonnes of LNG
from Venture Global’s Calcasieu Pass LNG facility for a shorter duration, the firm said.
Venture Global did not disclose any additional information regarding the contracts.
Largest single US LNG supply deal
According to Venture Global, this represents the largest single LNG supply deal ever signed by a US company. Also, the deal will double imports of US LNG to China.
“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 chief executive Mike Sabel.
“Today’s announcement will accelerate our combined efforts to lower carbon emissions and provide a low-cost, reliable and secure energy supply to China,” he said.
“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.
“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,” he said.
Plaquemines LNG FID nearing
LNG Prime reported on these three deals on October 20 as Venture Global’s units Plaquemines LNG but also Calcasieu Pass revealed them in status reports sent to the Department of Energy (DOE).
Under the first LNG deal, 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, the first status report said.
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, it said.
Under the smaller deal with Unipec, 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 before.
This means that in the meantime, the duo agreed to increase volumes under this deal as Venture Global said Unipec agreed to purchase 3.5 million tonnes of LNG.
With these deals, Venture Global LNG is nearing a final investment decision on its Plaquemines LNG project.
Moreover, Venture Global recently said it had started works to prepare the construction site for the 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.
Also, Plaquemines LNG has binding 20-year offtake agreements with Poland’s PGNiG for 4 mtpa and France’s EDF for 1 mtpa capacity.
The US firm plans to start full operations at the Plaquemines project in the middle of 2024.