Energy major BP has signed a natural gas supply agreement with ENN Group (ENN).
The two companies aim to jointly support the growing energy needs of China’s southern Guangdong region.
Under the terms of the agreement, BP will provide ENN with 300,000 tonnes per year of pipeline gas re-gasified from LNG for two years from January 1, 2021, in Guangdong.
The LNG will be received and re-gasified through the LNG receiving terminal of Guangdong Dapeng LNG Company (GDLNG) where BP holds regasification capacity.
Dev Sanyal , executive vice president of BP gas & low carbon energy, said, “Our strategy is to integrate energy value chains and, with this transaction, we have created an innovative model that integrates upstream gas resources, transportation and trading, into downstream markets in China. This is the first time an international energy company will re-gasify LNG through a Chinese terminal and also directly supply gas to customers.”
According to bp’s 2020 Statistical Review of World Energy, global natural gas consumption grew by 2 per cent in 2019, with a 54 billion cubic meters increase in LNG exports. The strong growth was boosted by China, where the country’s LNG imports rose by 11.3 billion cubic meters, making it the biggest increase in a single country.
To date, BP is the first international energy company to invest in an operating LNG terminal in China. GDLNG, which BP has a 30 per cent stake in, is China’s first pilot LNG import and regasification terminal.
Dongguan ENN is a customer of GDLNG, cooperating more than ten years.
For the past decade, GDLNG has delivered approximately 50 per cent of the accumulative gas consumption to its customers in Guangdong region, making it one of the most utilized terminals in China.