According to the latest Reuters report, China Petroleum and Chemical Corp. (Sinopec) has plans in place to sign a 20 year LNG agreement with US-based Cheniere Energy.
This news confirms rumours that had begun to circulate following a recent announcement by Sinopec’s President, Ma Yongsheng, and the signing of a deal between the US and China, agreeing to roll back tariffs.
The long-term supply contract will reportedly be signed as soon as the US-China trade dispute formerly ends.
Sinopec and Cheniere had previously reached an agreement on a deal in late 2018, however it was never formalised as trade friction increased in volatility. According to a Reuters sources, “Without the trade spat, the deal should have been signed some time ago.”
Both Cheniere and Sinopec have declined to comment on the deal, however it is understood that shipments comprising an annual total of approximately 2 million tpy will commence in 2023.