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).

Most Popular

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

US LNG exports climb to 34 cargoes

US liquefied natural gas (LNG) plants shipped 34 cargoes during the week ending April 16. According to the Energy Information Administration, pipeline deliveries to the LNG terminals increased compared to the prior week.

GTT secured orders for nine LNG carriers in Q1

French LNG containment giant GTT received orders for nine liquefied natural gas carriers in the first quarter, while its revenue rose 31.6 percent compared to the same period last year.

More News Like This

BP, partners ship first Tortue LNG cargo

UK-based energy giant BP and its partners have shipped the first liquefied natural gas (LNG) cargo produced at the Greater Tortue Ahmeyim FLNG project, located offshore Mauritania and Senegal, according to shipping data.

Venture Global launches Calcasieu Pass LNG commercial ops

US LNG exporter Venture Global LNG has launched commercial operations at its Calcasieu Pass LNG terminal in Louisiana, some 68 months from its final investment decision and 38 months after production start.

BP launches production at Cypre gas project in Trinidad and Tobago

BP's Cypre development, located offshore Trinidad and Tobago, has delivered its first gas. The Cypre gas field is located 78...

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.