BP signed a sales-purchase agreement with a unit of China's gas Company, Shenzhen Gas Group Co Ltd, for the supply of up to 300,000 tons of piped natural gas annually, as from 2023, BP said on Wednesday, October 20, 2021.
Based on the agreement, BP will provide Shenzhen Sino-Benny LPG Co Ltd, a fully-owned Shenzhen Gas unit with pipeline gas, for ten years.
The gas will be supplied through the liquefied natural gas terminal of Guangdong Dapeng LNG Company Ltd, Shenzhen. The terminal is also BP holds a significant regasification capacity.
In the statement, BP also said the fuel would be indexed according to internal LNG prices. But, that's not the only deal BP has in the region. The company has another deal with a Guangdong-based energy company, Foran Energy Group, aimed at supplying pipeline natural gas starting this year (2021) from the same strategic terminal.
"We look forward to working closely with Shenzhen Gas to provide high-quality delivery in support of China's growing energy needs," said Federica Berra, senior vice-president of BP Integrated Gas and Power, as quoted by global.chinadaily.com.cn.
"This demonstrates BP as an integrated energy company as we supply, re-gasify, and access new customer markets."
Emphasizing the significance of recent collaboration between two Gas Companies, Zhen Li, chairman of Shenzhen Gas, said energy security is a strategic and global issue tied to social and economic development.
According to BP's statistical review in relation to gas supply, the share of gas in the primary energy category has risen to a record 24.7%. The rise in natural gas use is partly contributed to by the national government efforts to accelerate the transition to low-carbon energy solutions.
BP has also projected that the global gas market will continue to grow incrementally for the next 15 years, as major Asian nations such as India, China, and other rapidly developing countries switch to the low emissions energy system.