China National Offshore Oil Corporation (CNOOC) and BP signed an agreement on Tuesday regarding long-term LNG sale and purchase.
According to the heads of agreement, which was signed in London, BP is to supply up to 1.5 mtpa of LNG from its global portfolio to CNOOC over 20 years starting in 2019. The companies expect to reach a full commercial contract in mid-2014.
Wang Yilin, Chairman of CNOOC, said: “The agreement with BP will not only deepen the cooperation between both parties, but also further diversify the LNG supply of CNOOC. CNOOC will continuously strive to acquire competitive natural gas resources around the world, and to make positive contribution to securing clean energy supply as well as protecting ecological environment of China.”
CNOOC imported more than 13 million tones of LNG, accounting for 72% of China’s total LNG importation, in 2013.
By the end of May 2014, CNOOC has built and put 6 LNG import terminals into operation at Guangdong, Fujian, Shanghai, Zhejiang and Tianjin, with a total LNG receiving capacity of 24.8 mtpa.
Meanwhile, the Hainan, Shenzhen, Yuedong LNG import terminals are currently under construction and will be commissioned before the end of 2015.
LNG World News Staff, June 18, 2014; Image: CNOOC