British energy giant bp has begun to directly supply gas customers in China with gas from liquefied natural gas (LNG) that it has imported into the country.
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 is now one of the leading foreign investors in the Chinese energy sector. It’s business activities in China include aviation fuel supply, oil products retailing, lubricants blending and marketing, oil and gas supply and trading, LNG terminal and trunk line operation, future mobility solutions as well as venturing. Building on its business successes in China, bp has also expanded partnerships with Chinese national energy companies internationally.
The first cargo of gas delivered under bp’s new terminal usage agreement at the Guangdong Dapeng LNG Company Limited (GDLNG) import terminal in Shenzhen, Guangdong Province, arrived on 24 January. Under the agreement, bp has 600,000 tonnes a year tolling regasification capacity at GDLNG.
Last year bp signed gas supply agreements with ENN Group and Foran Energy, both in Guangdong. bp will supply each with 300,000 tonnes per year of pipeline gas, re-gasified from LNG, for two years from 2021.
Federica Berra, bp’s senior vice president of integrated gas and power, said:
“Today represents an important milestone for our operations in China, growing our presence and connecting right along the gas value chain. With our world class technologies, marketing and trading capabilities, we have developed an innovative, diversified and flexible integrated business model enabling us to both provide more LNG to the region and also increase our access to downstream gas markets.”
China has announced it aims for peak carbon dioxide emissions before 2030 and to become carbon neutral by 2060.
Simon Yang, bp China president and bp senior vice president, regions, cities and solutions for China, added:
“bp is proud of our long-term partnerships with stakeholders in growing markets like China. Increasing the availability of natural gas to customers across China supports and is aligned with the country’s aim to increasingly switch from coal to gas. We will continue to steadily grow our footprint here and more importantly support China in its aims for a better and cleaner energy future.”
The first LNG truck fleet from the Shenzhen Dapeng LNG Marketing Company (SZDP) also made its inaugural journey. bp holds a 30% interest in GDLNG.
Photo credit: bp PLC