Bp has signed a gas supply agreement with the Chinese energy company ENN Group (ENN) to support the growing energy demand in China’s southern Guangdong region, according to a press release.
Under the terms of the agreement, bp will provide ENN with 300,000 tonnes per year of pipeline natural gas starting from January 1, 2021 in Guangdong. Liquefied natural gas (LNG) will be received and re-gasified then transported through the LNG receiving terminal of Guangdong Dapeng LNG Company Limited (GDLNG), where BP owns regasification capacity.
Speaking on the deal, Dev Sanyal, executive vice president of bp gas & low carbon energy, said: “Our strategy is to integrate energy value chains and, with this transaction, we have created an innovative model that integrates upstream gas resources, transportation and trading, into downstream markets in China. This is the first time an international energy company will re-gasify LNG through a Chinese terminal and also directly supply gas to customers.”
According to bp’s 2020 Statistical Review of World Energy, China’s LNG imports rose by 11.3 billion cubic meters. This meteoric increase can be attributed to China’s transition from coal to gas.
Bp is the first international energy company to invest in an operating LNG terminal in China and intends on being a key strategic partner to help realize China’s energy transition.