BP inks new China LNG deal

A unit of UK-based energy giant BP has signed a new deal to supply regasified LNG to a subsidiary of China’s State Power Investment Corporation (SPIC).

Under the sales and purchase deal, BP China said in a statement it would supply 200,000 mt per year of regasified LNG to the southern Guangdong province for a period of 10 years starting from 2023.

BP’s unit would provide the fuel to SPIC Guangdong via the Guangdong Dapeng LNG import terminal in Shenzhen where it has a 30 percent stake.

Moreover, the deal marks an “important first step” for SPIC to promote the development of its international natural gas trading business, the statement said.

SPIC, via its unit in Brazil, is already cooperating with BP in GNA’s LNG-to-power project located in Rio De Janeiro. The state-owned firm bought stakes in two LNG power plants which form the project where BP is also a shareholder.

On the other side, BP was the first international oil and gas firm in China to invest in an operational LNG terminal with its 30 percent share of the GDLNG terminal. The facility accounts for about 50 percent of Guangdong’s natural gas consumption, according to BP.

Earlier this year, BP started to directly supply customers in China with regasified LNG from the terminal.

This is the first time that BP has created a fully integrated gas value chain into China, directly connecting upstream resources, transportation and trading with downstream gas customers.

Besides this new deal, BP this year signed supply deals with China’s Guangzhou Development Group and Shenzen Gas.

Most Popular

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.

Glenfarne becomes majority owner of Alaska LNG

US energy firm Glenfarne has signed definitive agreements with state-owned Alaska Gasline Development Corporation to become the majority owner of the giant Alaska LNG export project.

Petronas to supply LNG to PetroVietnam Gas

Malaysian energy giant Petronas will supply liquefied natural gas (LNG) to PetroVietnam Gas, a unit of state-owned PetroVietnam, next month. The two firms will also look into the possibility of signing long-term LNG contracts.

More News Like This

BP takes FID on Ginger gas project in Trinidad and Tobago

UK-based energy giant BP has taken the final investment decision on the Ginger gas development offshore Trinidad and Tobago.

Argentina’s Enarsa gets offers for LNG cargo tender

Argentina's state-owned LNG importer Energia Argentina (Enarsa) has received seven offers for its first LNG cargo tender in 2025.

Shell CEO expects progress on Venture Global arbitration this year

Shell’s CEO Wael Sawan expects to have an update on an arbitration dispute with US LNG exporter Venture Global LNG later this year.

BP exercises option to terminate charter deal for Seapeak LNG carrier

A unit of UK-based energy giant BP has exercised its option to terminate the existing charter deal for one of Seapeak's liquefied natural gas (LNG) carriers.