BP seals LNG trucking pact with China’s Zhejiang Energy

BP’s unit in China is joining forces with Zhejiang Energy to supply liquefied natural gas (LNG) via trucks in China.

According to a statement by BP China, the firm signed a joint venture agreement with Zhejiang Energy Gas to establish a company to supply and sell LNG via trucks.

BP China said 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 to directly supply customers in China with regasified LNG from the Guangdong Dapeng LNG terminal in Shenzhen, where it has a 30 percent stake.

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.

BP China also noted in the statement that construction has started in February this year on the Jiangsu Huadian Ganyu LNG terminal.

The firm has a 10 percent stake in the facility and also capacity rights.

BP China expects the facility to go online in 2027.

Besides the terminal business, in November 2022, China’s power generation firm Shenzhen Energy signed a long-term deal to buy LNG from a unit of BP.

BP also signed at least three Chinese LNG supply agreements in 2021. These include deals with Guangzhou Development GroupShenzhen Gas, and China’s State Power Investment Corporation (SPIC).

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