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.