Diplomatic tensions between China and Australian have grown chillier than the weather in Beijing today—39 degrees with rain. The impact of this relationship turned sour has hit hardest on trade between the two, especially LNG of which Australia is one of the world’s top producers and China one of its largest customers. From June 2020 to June 2021, Australia supplied a record 72.4 million tons of LNG to China at a cost of $10.6 billion. So, what’s a continent of 1.4 billion folks to do in its furious haste to stockpile energy to ride out the worst of the winter season and the 2022 Olympic Games? Apparently, you pick up the phone and call the U.S. Reese Energy Consulting today is following the latest news from Va.-based Venture Global LNG, which now has signed three 20-year contracts–two with China’s Sinopec for 4 mtpa of LNG and one with Sinopec’s trading unit Unipec for 2.8 mtpa. Sources report that at least five Chinese firms are in talks with U.S. LNG firms, including Cheniere. Between January and August, the U.S. exported 5.4 mtpa to China alone—a 375% increase from the same period last year.
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Venture Global LNG
Venture Global LNG is a long-term, low-cost producer of North American liquified natural gas (LNG). Their export facilities, Calcasieu Pass, Plaquemines LNG, CP2 LNG and Delta LNG, will supply the world’s growing demand for low-cost, clean and reliable North American energy.