China’s Zhejiang Energy, BP start LNG supplies via trucks

China’s Zhejiang Energy and a unit of UK-based energy giant BP have started supplying liquefied natural gas (LNG) via trucks in China.

According to separate statements by BP China and Zhejiang Energy, the first truck supplied by their new joint venture Zhejiang Yingneng LNG left on Monday Zhejiang Energy’s Wenzhou LNG terminal in Zhejiang.

The trucked LNG supplies will be used by industrial and commercial users, according to the two firms.

Last year, BP China and Zhejiang Energy agreed 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.

China’s Zhejiang Energy, BP start supplying LNG via trucks
Image: BP China

On the other hand, Zhejiang Energy launched its 3 mtpa Wenzhou LNG terminal in August last year.

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.

Zhejiang Energy holds a 51 percent stake in the terminal, while Sinopec holds a 41 percent stake, according to GIIGNL data.

In July last year, Zhejiang Energy signed a long-term deal to buy LNG from Mexico Pacific, the developer of the planned Sonora LNG export project.

Under the 20-year SPA, Zhejiang Energy International plans to offtake 1 million tons per year LNG on a FOB basis from Mexico Pacific’s anchor LNG export facility, Saguaro Energia, located in Puerto Libertad, Sonora.

Most Popular

Woodside scraps US hydrogen project

Australian LNG player Woodside has scrapped its proposed H2OK hydrogen project in Ardmore, Oklahoma.

Golden Pass LNG gets new FERC approval as commissioning progresses

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is moving forward with commissioning activities at its two-train LNG plant in Texas with a new approval from the US FERC.

TotalEnergies, CMA CGM to launch LNG bunkering JV

French energy giant TotalEnergies and compatriot shipping firm CMA CGM have signed a deal to develop a 50/50 logistics joint venture dedicated to the implementation and operation of an LNG bunkering supply solution at the Dutch port of Rotterdam.

More News Like This

BP names new chair

UK-based energy giant and LNG player BP has appointed Albert Manifold to succeed Helge Lund as chair of the company.

Argentina’s Enarsa receives five offers for latest LNG cargo tender

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

Former Shell CFO joins BP’s board

UK-based energy giant BP has appointed Simon Henry, Shell's former finance chief, to its board as a non-executive director.

Argentina’s Enarsa to spend $567 million on LNG purchases

Argentina's state-owned LNG importer, Energia Argentina (Enarsa), will spend $570 million to purchase 22 liquefied natural gas (LNG) cargoes from BP and TotalEnergies this year.