- Sinopec (NYSE:SNP) says it signed a long-term contract to buy propane from Phillips 66 (NYSE:PSX), in the latest example of how cheap natural gas flowing from the U.S. shale boom is creating new opportunities for U.S. energy companies to sell fuels to China.
- Although Chinese companies can make their own propane, the process is more expensive because of the tighter oil and gas supplies in China; while U.S. propane prices traditionally have been too high to justify shipments to China, the boom in U.S. natural gas production from shale-rock drilling technology has sent U.S. prices tumbling to their lowest levels in years.
- SNP didn't disclose the length, volume or value of the deal.