FILE PHOTO: A man stands next to a logo of Sinopec, or China Petroleum and Chemical Corporation, at an expo on rubber technology in Shanghai, China September 19, 2018. REUTERS/Stringer/File PhotoSINGAPORE: China's Sinopec, expected to be the next major Chinese buyer of US liquefied natural gas , is planning to review terms of a potential US$16 billion supply deal with Cheniere Energy after a sharp drop in LNG prices, industry officials said.
That coming supply would add to an existing glut that has caused gas prices to collapse to their lowest levels in years and could keep them suppressed - giving Sinopec additional leverage with Cheniere.A source familiar with the talks said many items needed to be reviewed as US gas prices have more than halved since 2018.
" will be renegotiated... over delivery terms and price," said an industry executive with knowledge of the matter, who declined to be named as the matter is not public."It may not be tough, but will take time."Sinopec, which plans to more than double its LNG receiving capacities to 41 million tonnes by 2025, emerged last year as China's biggest spot buyer of LNG, as it is a much smaller purchaser under long-term deals than PetroChina or China National Offshore Oil Corp .
The prospect of buying US LNG is even more remote for China's so-called second-tier independent gas companies, because they have little access to terminal facilities.
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