Sinopec Awards 10-Year LNG Tender to Qatargas: Press

China's Sinopec has selected Qatari LNG exporter Qatargas as the winner of a tender for 1mn mt/yr of LNG supply over a 10-year period starting in 2023, Reuters reported on September 4 citing sources.

Sinopec will pay at a slope of 10.19% to Brent crude for the supplies on a delivered ex-ship basis, Reuters said. The Chinese state oil company opened the tender in July, likely seeking to exploit low prices to lock in cheap long-term supply. The slope translates in a little over $4.50/mn Btu at $45/barrel of Dated Brent crude.

Qatar touts itself as the world's lowest-cost LNG exporter, giving it greater room to outbid its competitors. It is looking to drive home its advantage by expanding its liquefaction capacity from 77mn mt/yr at present to 110mn mt/yr by 2025 and 126mn mt/yr by the late 2020s.

Sinopec is among the biggest LNG importers in China, bringing ashore 15mn mt of supplies last year.