Sinopec reportedly looking to offload LNG commitments

Beijing: In the wake of plummeting oil prices and a slowing local economy state-controlled energy giant Sinopec is looking to sell some long-term liquefied natural gas (LNG) import deals, Reuters reports.

"Based on the recent fall in oil prices… there is an increased risk that there could be a near-term cut in natural gas price (in China) for the first time," Bernstein Research said on Tuesday, adding that at lower levels "LNG and pipeline imports make little sense for producers".

Sinopec’s big investments in Australia and Papua New Guinea are thought to be on the chopping block.

Sinopec invested in the Australia Pacific LNG in 2011 and 2012, when Asian spot LNG prices averaged $14.8 per mmBtu, compared with less than $10 per mmBtu now.  [10/12/14]

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