China's Sinopec awards 10-year gas tender to Qatargas: sources - Reuters

China's Sinopec awards 10-year gas tender to Qatargas: sources - Reuters:

China’s Sinopec Corp has awarded a 10-year tender to buy 1 million tonnes of liquefied natural gas annually from Qatargas, two industry sources with knowledge of the matter said on Friday, to take advantage of current low prices.

Sinopec has agreed to pay at a slope of 10.19% to Brent crude on a delivered ex-ship basis, said one of the sources.

The deal shows how some buyers are taking advantge of the heavily oversupplied market, with industry sources saying many producers were taking part in the tender.

The Chinese state oil and gas producer issued the tender in July, seeking supplies starting 2023, after prices dropped due to the COVID-19 pandemic hammering global demand for the fuel.