Bp plc has signed a gas supply agreement with ENN Group to support the growing energy needs of China’s southern Guangdong region.
Under the terms of the agreement, bp will provide ENN, one of China’s largest private-owned energy companies, with 300,000 tonnes per year of pipeline gas re-gasified from LNG for two years from 1 January 2021 in Guangdong.
The LNG will be received and re-gasified through the LNG receiving terminal of Guangdong Dapeng LNG Company Limited where bp holds regasification capacity.
In commenting on the announcement, Dev Sanyal, executive vice president of bp gas and 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. We look forward to further cooperating with ENN and contributing to China’s ever-growing energy demand.”
Wang Yusuo, chairman of ENN Group said the cooperation will enable ENN to provide better resources and services to their customers while also empoweringthe energy industrial reform and development in China.
“Looking into the future, bp has announced its respected ‘Net Zero’ ambitions. ENN is also dedicated to building a modern energy system by adopting digital technologies. These visions to better build our planet, will need support from all aspects. It’s a great beginning. We hope to deepen cooperation with innovative outcomes, together contributing to the development of global clean energy,” Mr Yusuo said.
According to bp’s 2020 Statistical Review of World Energy, global natural gas consumption increased by 2 per cent in 2019. In volume terms, demand grew by 78 billion cubic metres (bcm), led by the US (27 bcm) and China (24 bcm).
“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 and bp senior vice president, regions, cities and solutions for China.
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.”
