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

Cheniere takes FID on two more Corpus Christi LNG trains

US LNG exporting giant Cheniere has made a positive final investment decision to build two more midscale trains at its Corpus Christi LNG plant in Texas. The company has also issued full notice to proceed to Bechtel.

Golar progresses FLNG growth plans

Golar LNG said it had signed a final engineering study to confirm EPC price and delivery for a 5 mtpa MKIII FLNG.

Mexico Pacific seeks DOE extension

Mexico Pacific, the developer of the planned 15 mtpa Saguaro Energia LNG export project, is seeking a seven-year extension of its export deadline from the US Department of Energy.

More News Like This

Tortue LNG cargo heads to Europe

UK-based energy giant BP has shipped the third LNG cargo produced at the Greater Tortue Ahmeyim FLNG project, located offshore Mauritania and Senegal, to Europe, according to shipping data.

Argentina’s Enarsa gets offers for new LNG cargo tender

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

Brazil’s GNA launches second LNG power plant

Brazilian joint venture Gas Natural Acu has launched commercial operations at the second plant as part of its LNG-to-power project in the Port of Acu in Rio de Janeiro.

BP seals LNG SPA with India’s Torrent Power

A unit of UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with India's Torrent Power.