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LNG: Sinopec Seeks Price Review for Australian LNG Supply

LNG
Energy BulletsBulletPower BulletsCommodities

China’s Sinopec aims to lower the price of an existing 7.6mtpa Australian LNG supply agreement to match current market fundamentals, according to Bloomberg.

  • Sinopec has sent a price review to Origin Energy, owner of 27.5% of the Australia Pacific LNG export facility.
  • The company is seeking fuel cheaper for its domestic market with changes effective from January.
  • The APLNG contract price currently has about a 14% link to Brent on a free-on-board basis while similar agreements are currently priced at about 12% or below, Bloomberg sources said.
  • The global LNG market is set to switch to an oversupply from 2027 with the introduction of new LNG production which could drive global prices lower.
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China’s Sinopec aims to lower the price of an existing 7.6mtpa Australian LNG supply agreement to match current market fundamentals, according to Bloomberg.

  • Sinopec has sent a price review to Origin Energy, owner of 27.5% of the Australia Pacific LNG export facility.
  • The company is seeking fuel cheaper for its domestic market with changes effective from January.
  • The APLNG contract price currently has about a 14% link to Brent on a free-on-board basis while similar agreements are currently priced at about 12% or below, Bloomberg sources said.
  • The global LNG market is set to switch to an oversupply from 2027 with the introduction of new LNG production which could drive global prices lower.