Oil and gas giant BP and China Huadian Corporation signed a sale and purchase agreement for up to 1 million tonnes of LNG per year worth up to $10 billion over the next 20 years.
“This marks another long-term LNG supply deal between BP and Chinese buyers and it will play an important role in enhancing China’s energy diversification and supporting its economic growth,” said Bob Dudley, BP Group Chief Executive.
Huadian is one of the five largest state-owned power generation companies in China and the country’s largest gas-fired power generator.
The agreement with Huadian was one of a number of new agreements with Chinese firms, adding several billion dollars in future trade to the BP’s business with China, the company said in a statement.
BP has also entered into a global partnership with China National Petroleum Corporation covering potential shale gas exploration and production in the Sichuan Basin and future fuel retailing ventures in China and other international partnerships.
The company and CNPC have also agreed to explore LNG trading opportunities globally, work together on carbon emissions trading, and share knowledge around technology and management practices.
LNG World News Staff; Image: BP