BP inks LNG SPA with China’s Zhejiang Energy

According to a statement by BP China, the 10-year sales and purchase agreement was signed on May 21.

Under the agreement, 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.

BP China said this SPA further strengthens the strategic cooperation between the two companies after the duo established a joint venture to supply LNG via trucks in China in 2023.

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 25km pipeline linked to the grid.