BP Makes Inroads in China
BP has launched direct supplies of regasified LNG in China, the UK major reported on January 25, establishing its first integrated gas value chain in the country.
The company signed supply agreements last summer with China's ENN and Foran Energy for the supply of 300,000 metric tons/year each of regasified piped supplies starting in January 2021. A first gas cargo for these customers was delivered on January 24 to the Guangdong Dapeng LNG (GDLNG) terminal in Shenzhen, in the Guangdong province, where the company has 600,000 mt/yr of regasification capacity at its disposal.
"Today represents an important milestone for our operations in China, growing our presence and connecting right along the gas value chain." BP's senior vice president for integrated gas and power, Federica Berra, commented. "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."
BP acquired a 30% interest in the Cnooc-operated GDLNG terminal in 2007, becoming the first foreign company to invest in Chinese regasification capacity. It is one of the most utilised terminals in the country.
Already the world's biggest gas importer, China is on a push to expand the fuel's role in the power and heating sectors at the expense of coal, to improve air quality in its biggest cities and reach its 2060 carbon-neutral target.
BP had hoped to be able to produce and supply gas by pipeline to China from the Kovyktinskoe field in Russia's far east, but those plans were scrapped as it did not have the right to export gas. That field is now to be part of Gazprom's Power of Siberia project.