Sinopec to Purchase 1 MMt LNG in 10-Year Deal with Qatargas
According to sources, China’s state-owned national oil company Sinopec set to purchase one million tons of LNG from Qatargas in a 10-year contractual supply deal at 10%-10.19% Brent crude oil price. The tender was awarded on August 31, 2020, and the contract is expected to start from 2022.
With the upcoming completion of Sinopec Tianjin Terminal expansion and the two newly built terminals in Zhejiang and Shandong, Sinopec is planning to add more supplies to its portfolio from the global market. The talk with Cheniere was in no progress because of the trading tension between the U.S. and China, and Sinopec chose Qatargas to fill the foreseeable gap in future supply. Sinopec is also putting tender in spot cargoes for 8 cargoes for delivery in the upcoming winter heating season.
