China’s Sinopec has signed a contract with U.S. Venture Global LNG to buy 4 million tonnes of liquefied natural gas (LNG) annually for 20 years, reports Reuters.
20 year LNG contract
China Petroleum & Chemical Corporation (HKG: 0386, “Sinopec”) has signed a 20-year liquified natural gas (LNG) contract with U.S. LNG producer and exporter Venture Global LNG, to purchase 4 million tons of LNG a year.
Purchase of LNG resources
Venture Global will supply the LNG from its plant in Plaquemines, Louisiana. In addition, China International United Petroleum & Chemicals (“UNIPEC”), a subsidiary of Sinopec, will purchase LNG resources totaling 3.8 million tons from Venture Global’s Calcasieu Pass project.
Ma Yongsheng, president of Sinopec, noted that Sinopec has always insisted on a low-carbon, green, safe and responsible development strategy.
About the contract
“Sinopec has been vigorously promoting the high-quality development of the natural gas business and improving clean energy supply guarantee capabilities to continuously build a better life. The LNG contract with Venture Global LNG reflects the two companies’ high consensus on supporting the global energy transformation and realizing the “dual carbon” goals of reaching peak carbon and achieving carbon neutrality,” said Ma.
Carbon emissions reductions
Mike Sabel, CEO of Venture Global LNG, expressed how great an honor it is to establish a long-term cooperative relationship with Sinopec, and how the cooperation will speed up the carbon emissions reductions of both parties and provide low-cost, reliable, and safe clean energy to China.
Venture Global LNG has been committed to promoting the global fuel transformation from coal to natural gas since the company was founded, and is very glad to supply U.S. LNG to Sinopec in support of China’s energy transformation.
Economical LNG resources
Venture Global LNG is a key LNG supplier in the Gulf of Mexico region in the U.S. and is committed to utilizing the rich natural gas resources of North America to provide the world with clean and economical LNG resources.
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Source: Reuters
