China’s Zhejiang Energy gets first LNG shipment under BP SPA

Zhejiang Energy and BP China announced the delivery of the first LNG cargo under the long-term sales and purchase deal signed in May 2025 in separate statements on Sunday.

The LNG cargo arrived at Zhejiang Energy’s Wenzhou LNG terminal in Zhejiang from North America on April 25, the Chinese company said.

Zhejiang Energy did not provide further details regarding the shipment.

Under the SPA, BP will supply up to 1 million tons of LNG per year to Zhejiang Energy on a DES basis from its diversified global LNG portfolio.

The contract is for 10 years.

BP China said this SPA further strengthens strategic cooperation between the two companies, following the duo‘s 2023 joint venture to supply LNG via trucks in China.

In July 2024, the first truck supplied by the joint venture Zhejiang Yingneng LNG left Zhejiang Energy’s Wenzhou LNG terminal in Zhejiang.

BP China said at the time that this is the first cooperation between the two firms and BP’s third marketing and sales venture in China for trucked LNG, including Shenzhen Dapeng LNG Marketing.

In 2021, BP started directly supplying customers in China with regasified LNG from the Guangdong Dapeng LNG terminal in Shenzhen, where it owns a 30 percent stake.

In addition to trucked supplies, BP delivered its first LNG cargo to Zhejiang Energy’s Wenzhou LNG terminal in October 2024.

With this, BP created a fully integrated gas value chain in southern China for the second time, directly connecting upstream resources with downstream gas customers.

Zhejiang Energy launched its 3 mtpa Wenzhou LNG terminal in August 2023.

The terminal has four 200,000 cbm storage tanks, a jetty for ships of up to 266,000 cbm capacity, a truck loading facility, and a 25 km pipeline linked to the grid.