China’s Sinopec to Get its Mitts on LNG from the USA’s Venture Global LNG
- 22-Nov-2021 12:00 PM
- Journalist: Jacob Kutchner
China’s oil refinery and petrochemical giant, China Petroleum and Chemical Corporation (aka. Sinopec) under a major contract signed with the USA’s liquified natural gas (LNG) producer and supplier Venture Global LNG, will be procuring 4 million tons/year LNG from the company for a period of 20-years. The contract, which is being touted as the largest long-term contract ever established between Chinese and American solicitors, will allow Sinopec to leverage LNG volumes from Venture Global LNG’s plant in Plaquemines, Louisiana.
Additionally, Sinopec’s subsidiary, China International United Petroleum & Chemicals (UNIPEC), is looking forward to purchasing 3.8 million tonnes of LNG resources from Venture Global LNG’s Calcasieu project in Louisiana.
The contract forms a crucial part of Sinopec’s “dual-carbon” goal to attain carbon peak in 2030 and achieve carbon-neutrality in all its operations by 2030.
Liquified Natural Gas is a fuel derived from fossil fuels and is composed of methane and other higher alkanes. LNG forms the very part of our economic growth as it supports the industrialization, transport sector, and household works by behaving as an important source for electricity generation, heating, cooking, providing raw materials for manufacturing fertilizers, plastics and other industrially important chemicals. LNG has been widely accepted as a transition fuel due to its ability to produce 45% reduced emissions from coal on combustion.
As per ChemAnlayst, this contract reflects Sinopec’s firm resolute and accelerated efforts towards making carbon-neutral petrochemical production possible within the stipulated time. The supply of liquified natural gas, facilitated by the USA’s exporter, is expected to anchor China’s growth as a clean energy supplier in the international market. The accelerated supply of natural gas is expected to improve clean energy production in the country, which in turn is expected to lower down the high trending energy prices.