Venture to double US LNG sales to China with new deals
US LNG developer Venture Global announced on November 4 it had signed two 20-year deals to supply a combined 4mn metric tons annually of LNG to China's Sinopec from its Plaquemines LNG facility in Louisiana. It has also agreed a third contract to deliver 3.5mn mt of LNG from its Calcasieu Pass facility, also in Louisiana, to Sinopec subsidiary Unipec over a shorter period.
"This represents the largest single LNG supply deal ever signed by a US company and will double imports of US LNG to China," Venture said in a statement, noting that the shipments would help drive coal-to-gas switching in China, reducing the country's emissions.
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Construction of Venture's 10mn mt/year Calcasieu Pass terminal is nearing completion, The company asked US regulators in late October for permission to start commissioning the facility, and it is expected to enter commercial service in early 2022.
The larger 20mn mt/yr Plaquemines project is at a less advanced stage. Venture secured approval for early work at the site in late October, and the company's website states that a final investment decision on the facility's first 10mn-mt/yr phase is expected before the end of the year.
Venture already has binding contracts in place for 4mn mt/yr of supplies from Plaquemines with Poland's PGNiG, and 1mn mt/yr of shipments with France's EDF.