BP will supply ENN with 300,000 tonnes per year of pipeline gas re-gasified from LNG
Bp signs two-year gas supply contract with ENN Group. (Credit: bp p.l.c.)
UK-based oil and gas company BP has signed a contract with Chinese energy company ENN Group to supply gas to southern China’s Guangdong province.
As per the terms of the agreement, BP will supply ENN with 300,000 tonnes per year of pipeline gas re-gasified from LNG.
The LNG receiving terminal of Guangdong Dapeng LNG Company (GDLNG) will be used to receive and re-gasify the LNG. BP holds regasification capacity at the terminal.
The gas will be supplied for two years from 1 January 2021 in Guangdong. It is expected to support the increasing energy needs of China’s southern Guangdong region.
ENN Group chairman Wang Yusuo said: “Today’s cooperation will enable ENN to provide better resources and services to our customers. It will also empower the 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.”
BP holds a 30% stake in GDLNG
BP is claimed to be the first international energy company to invest in an operating LNG terminal in China.
The firm said that GDLNG, in which BP holds a 30% stake, is claimed to be China’s first pilot LNG import and regasification terminal.
ENN’s subsidiary Dongguan ENN is said to be an important customer of GDLNG for more than ten years.
ENN Group gas business senior vice president Zheng Hongtao 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.”