Venture Global LNG Inc. has signed two long-term sales and purchase agreements to supply state-owned China Petroleum & Chemical Corp., aka Sinopec, with liquefied natural gas (LNG) from its Plaquemines export terminal under development in Louisiana. 

Sinopec agreed last month to purchase 2.8 million metric tons/year (mmty) on a free-on-board (FOB) basis in one deal and 1.2 mmty on a delivered-at-place-unloaded (DPU) basis for terms of 20 years. Other details were not disclosed about the confidential agreements, which were revealed in a filing with the Department of Energy as part of Plaquemines semi-annual status report. 

Most U.S. LNG is sold on an FOB basis, with LNG ownership transferred to the buyers when it is loaded onto a ship at the export terminal. Offtakers then incur...