Venture Global LNG has signed three long-term LNG supply contracts with Chinese firms China Petroleum & Chemical (Sinopec) and Sinopec’s trading arm Unipec.
The deals come amid shortages of domestic power and mounting gas prices in the world’s second-biggest economy.
Under the two contracts with Sinopec, Venture Global LNG will supply four million tonnes per annum (mtpa) of LNG, reported Reuters citing a letter filed by Venture Global LNG with the US Department of Energy (DOE).
The LNG will be supplied from the planned LNG export facility in Plaquemines Parish, Louisiana, in the US.
Upon completion, the Plaquemines facility will have an export capacity of up to 20 million metric tonnes per year. The project also involves the development of the Gator Express pipeline.
The offtake agreements mark a step ahead in advancing the Venture Global LNG’s Plaquemines project to a final investment decision, which is planned by the end of this year.
According to the company’s letter, the two sales and purchase agreements are for 20 years each.
One of the deals is for 2.8mtpa and will be sold on a free-on-board (FOB) basis.
The other contract is for 1.2mtpa of LNG, which will be supplied on a delivered at place unloaded (DPU) basis.
Under the deal with Unipec, Venture Global LNG will supply 1mtpa of LNG from the company’s Calcasieu Pass facility, reported the news agency citing a separate document posted on the US Government website.
The deal term is for three years and is effective from March 2023.