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.