China Petroleum & Chemical Corp. will look into the terms of a possible $16 billion, 20-year supply deal with LNG producer and exporter Cheniere Energy Inc. following a decrease in LNG prices, Reuters reported Jan. 17, citing industry officials.
One of Reuters' sources said the "delivery terms and price" of the potential LNG supply deal are going to be renegotiated. The China-based integrated oil and gas company's plan to evaluate the agreement details could push back a scheduled deal signing for U.S.-China energy purchases in the two countries' "phase one" trade agreement signed Jan. 15, according to the article.
The company, known as Sinopec, is also reaching out to other U.S. LNG suppliers, Reuters reported, citing another source familiar with the matter. In addition, Sinopec may call for the removal of a 25% tariff, which has been negatively impacting U.S. imports, according to the report.
Reuters said Sinopec declined comment requests, while Cheniere did not reply to a request for comment.