Super-major BP has signed a heads of agreement with China National Offshore Oil Corporation (CNOOC) for the supply of liquefied natural gas (LNG) over a 20-year period.
The deal sets up the provision of up to 1.5million tonnes of LNG annually starting in 2019.
BP would expect to supply LNG from its global portfolio, using its own LNG tanker fleet and chartered ships delivering gas to a number of terminals in China.
The contract is expected to be finalised in mid-2014.
“This is a significant deal for BP and China but it also marks a step up in global connectivity in the gas market,” said Bob Dudley, BP group chief executive.
“This is important for all countries and regions looking at the diversity of energy supply and energy security – it gives BP greater flexibility to respond to the changing energy demands from Europe, Asia and other regions.
“This agreement is the first long-term LNG supply deal wih China where BP is the sole supplier and it should play a crucial role in enhancing China’s energy diversification and supporting its economic growth.”
Recommended for you
