BP, China's ENN Ink Gas Deal
BP on July 9 said it has signed a gas supply agreement with China’s ENN group. The UK major will provide ENN with 300,000 metric tons/year of pipeline gas regasified from LNG for two years from January 1, 2021 in Guangdong.
The LNG will be received and regasified at the LNG receiving terminal of Guangdong Dapeng LNG Company (GDLNG), where BP holds regasification capacity.
Dev Sanyal, executive vice president of BP gas and low carbon energy, said that this marked the first time an international energy company was regasifying LNG through a Chinese terminal and also directly supplying gas to customers.
“As China progresses the coal to gas switch and advances the energy transition, BP is committed to being a trusted and valued partner, bringing smart and low carbon solutions to contribute to a net zero future,” added Simon Yang, BP China president.
GDLNG, which BP has a 30% 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% of the accumulative gas consumption to its customers in Guangdong region, making it one of the most utilized terminals in China, BP said.
Zheng Hongtao, senior vice president of ENN Group gas business, said: “The cooperation has enriched gas supply in the Guangdong region, providing support to the development of ENN’s gas business. Meanwhile, the innovative business model of LNG import, processing and transportation, sets a good example for China’s LNG industrial market reform.”