Sinopec to review $16bn US gas deal with Cheniere

Updated January 19, 2020

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Sinopec and Cheniere had been expected to sign the deal once a trade truce was reached between Beijing and Washington. — Reuters/File
Sinopec and Cheniere had been expected to sign the deal once a trade truce was reached between Beijing and Washington. — Reuters/File

SINGAPORE: China’s Sinopec, expected to be the next major Chinese buyer of US liquefied natural gas (LNG), is planning to review terms of a potential $16 billion supply deal with Cheniere Energy Inc after a sharp drop in LNG prices, industry officials said.

That could delay sign-off on a deal that would help Beijing meet ambitious targets it set for US energy purchases in a Phase 1 trade agreement it signed with the United States on Wednesday.

Sinopec, officially named China Petroleum and Chemical Corp, and Houston-based Cheniere had been expected to sign the 20-year deal once a trade truce was reached between Beijing and Washington.

However, the LNG market has shifted since news of Sinopec and Cheniere’s negotiations became public early last year.

Published in Dawn, January 19th, 2020