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.
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.