BP has begun to directly supply gas customers in China with gas from liquefied natural gas (LNG) that it has imported into the country, the company announced on Monday.
This is the first time that BP has created a fully-integrated gas value chain into China, directly connecting upstream resources, transportation and trading with downstream gas customers.
The first cargo of gas delivered under BP's new terminal usage agreement at the Guangdong Dapeng LNG Company Limited (GDLNG) import terminal in Shenzhen, Guangdong Province, arrived on Jan. 24. Under the agreement, BP has 600,000 tonnes a year tolling regasification capacity at GDLNG.
"Today represents an important milestone for our operations in China, growing our presence and connecting right along the gas value chain. With our world class technologies, marketing and trading capabilities, we have developed an innovative, diversified and flexible integrated business model enabling us to both provide more LNG to the region and also increase our access to downstream gas markets," said Simon Yang, BP's China president.
Last year BP signed gas supply agreements with ENN Group and Foran Energy, both in Guangdong. BP will supply each with 300,000 tonnes per year of pipeline gas, re-gasified from LNG, for two years from 2021.
China has announced it aims for peak carbon dioxide emissions before 2030 and to become carbon neutral by 2060.
By Murat Temizer