Sinopec signs long-term deal to buy LPG from Phillips 66

摘要

China's largest state refiner, Sinopec Corp, has entered into a long-term deal to buy liquefied petroleum gas (LPG) from Phillips 66, reflecting an impact of the US shale drilling boom on Asian markets. The US shale boom in recent years has led to a surge in production of LPG, or propane, which is bringing down global prices and challenging established suppliers in the Middle East. LPG can be used for heating, transportation fuel or for making petrochemicals, and has diversified the chemical feedstock supply channels for Sinopec.