Sinopec signs 20-year export deal with Venture Global

The 20-year deal will see Venture Global supply 4M tonnes of LNG per year (mta) from its Plaquemines LNG export facility in Louisiana. Sinopec, the world’s largest refiner by volume, will provide 2.8 mta on a free-on-board basis in one deal and 1.2 mta on a delivered-at-place-unloaded basis for 20 years.

Sinopec said the deal represents the single-largest LNG trade agreement in terms of volume between the United States and China to date and Sinopec president Ma Yongshengb said the agreement with Venture Global will further facilitate China’s goals toward achieving a carbon peak by 2030 and carbon neutrality by 2060.

In addition, Sinopec’s trading arm Unipec will also buy 3.8M tonnes of LNG from Venture Global’s Calcasieu Pass Facility.

The companies did not specify the value of the deals or when supply would begin.

The deal is part of a trend of growing US LNG exports in part due to the growing demand from Asia. Despite the global pandemic, US LNG exports grew 31% year-on-year in 2020.

In October, ENN Energy, a private Chinese firm, and Cheniere Energy signed a deal that will see the latter supply LNG to ENN over a 13-year period.