Venture Global’s Calcasieu Pass facility inks LNG supply contract

Venture Global LNG and China Petroleum and Chemical Corp. (Sinopec) signed historic sales and purchase agreements Thursday to supply liquefied natural gas from the company’s LNG export terminals in Calcasieu Pass and Plaquemines.

Two 20-year sales and purchase agreements were signed for Venture Global’s Plaquemines facility to supply 4 million tons of LNG annually. Also, UNIPEC, a subsidiary of Sinopec, agreed on a shorter time frame to purchase 3.5 million tons of LNG from the Calcasieu Pass facility.

Mike Sabel, Venture Global CEO, said in a videotaped speech before the signing ceremony that the agreement is the “largest single LNG supply contract ever signed by a U.S. company and the “largest LNG import deal ever signed by a Chinese company.”

Sable also spoke of the ongoing global discussion on ways to lower the carbon footprint, including the United Nations Climate Change Conference in Glasgow, Scotland. He said there’s no silver bullet to energy transition, but he said liquefied natural gas will certainly play a role.

“One thing is clear: the global climate effort will not be successful without the continued and expanded deployment of natural gas,” Sabel said.

Sable said Venture Global is eager to share in the environmental progress, similar to the shale revolution that allowed the transition from coal to natural gas and dramatically reduced carbon dioxide emissions.

“Through the expanded deployment of clean LNG, we will equip our customers from Europe to Asia with the resources and opportunity to lower their emissions, while also providing energy security, reliability and affordability to their citizens,” he said.

Sable said analysts anticipate up to a 50 percent increase in the demand for clean LNG by 2050.

“It will be a critical partner in the buildout of renewable energy as the world moves away from coal,” he said.

Venture Global has committed to carbon capture and sequestration for all its facilities, with the plan to sequester 1 million tons of carbon annually, Sabel said.

Venture Global’s $4.5 billion Calcasieu Pass LNG export facility is being built on a 1,000-acre site at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico. Commercial operations are slated to begin in the fall of 2022, with the facility producing 10 million tons of LNG per year.
 

SportsPlus

McNeese Sports

Cowboys pound Alcorn

Crime

Westlake man accused of molestation

Local News

Audit says Louisiana’s temporary aid program doesn’t vet work records

McNeese Sports

Richards returning to Cowboys

Local News

Layoffs begin at US health agencies responsible for research, tracking disease and regulating food

Crime

4/1: Calcasieu Parish Sheriff announces arrest list

Crime

Court date reset in baby’s hot car death

Local News

Vietnam State Veterans Memorial dedication: Remembering those who gave the ultimate sacrifice

life

Someone You Should Know: 4 questions with Joel Davidson

life

Brush with nature: Artists express serenity of nature

Local News

Shumate to San Antonio, Garcia returning

Local News

Cowgirls to host powerful LSU

Local News

Unveiling the beauty of historic renovations

Crime

3/31: Calcasieu Parish Sheriff announces arrest list

Business

Stock markets fall worldwide as Trump’s ‘Liberation Day’ approaches

life

The art of charcuterie: Bringing art to life through food

life

SW La. school lunch menus March 31-April 4

Business

Names in the News: People shaping the future of Lake Area business

Local News

Calling all Lazy Gators: Westlake water park nearing completion

Local News

Tigers jump on Miss. State early and often to sweep series

Local News

Lake Charles mayoral race headed to runoff

Local News

Cameron voters favor amendments despite statewide rejection

Local News

Harris, Reynolds in runoff for DeRidder mayor

Local News

Louisiana voters overwhelmingly reject all four constitutional amendments