Venture Global LNG and China Petroleum and Chemical Corp. (Sinopec) on Thursday signed historic sale and purchase agreements to supply liquefied natural gas from the company’s LNG export terminals at Calcasieu Pass and Plaquemines.
Two 20-year sale and purchase agreements were signed for the installation of Venture Global’s Plaquemines to supply 4 million tonnes of LNG per year. In addition, UNIPEC, a subsidiary of Sinopec, has agreed to a shorter deadline to purchase 3.5 million tonnes of LNG at the Calcasieu Pass installation.
Mike Sabel, CEO of Venture Global, said in a videotaped speech ahead of the signing ceremony that the deal is the “largest LNG supply contract ever signed by a US company and the” largest ever LNG supply deal. import of LNG never signed by a Chinese company ”.
Sable also spoke about the ongoing global discussion on ways to reduce the carbon footprint, including the United Nations Climate Change Conference in Glasgow, Scotland. He said there was no silver bullet for the energy transition, but he said liquefied natural gas would certainly play a role.
“One thing is clear: the global climate effort will not succeed without the continued and extensive deployment of natural gas,” said Sabel.
Sable said Venture Global is keen to share environmental advancements, similar to the shale revolution that enabled the transition from coal to natural gas and significantly reduced carbon dioxide emissions.
“Through the expanded deployment of clean LNG, we will provide our customers from Europe to Asia with the resources and the opportunity to reduce their emissions, while providing energy security, reliability and affordability to their citizens,” he said. .
Sable said analysts expected demand for clean LNG to increase by up to 50% by 2050.
“It will be a vital partner in the development of renewable energy as the world moves away from coal,” he said.
Venture Global is committed to carbon capture and sequestration for all of its facilities, with the intention of sequestering 1 million tonnes of carbon per year, Sabel said.
Venture Global’s $ 4.5 billion Calcasieu Pass LNG export facility is under construction on a 1,000-acre site at the intersection of the Calcasieu Shipping Channel and the Gulf of Mexico. Commercial operations are expected to begin in the fall of 2022, with the facility producing 10 million tonnes of LNG per year.