State-owned LNG producing giant Qatargas has reportedly won a 10-year supply deal from China’s Sinopec.
Reuters reported on Friday citing unidentified sources the LNG giant will deliver 1 mtpa to the Chinese state oil and gas producer starting 2023.
Sinopec has agreed to pay at a slope of 10.19% to Brent crude on a delivered ex-ship basis.
The deal shows how buyers are taking advantage of the heavily oversupplied market with many producers participating in the tender.
Sinopec launched the tender in July after prices dropped due to Covid-19 destroying global LNG demand, the report said.