Sinopec to review $16bn US gas deal with Cheniere

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.