Oil & Gas Innovation Summer 2020 Digital | Page 28
PIPELINES
BP Signs Gas Supply Agreement
With ENN
bp has signed a gas supply agreement with ENN Group (ENN) to jointly support the growing energy
needs of China’s southern Guangdong region.
Under the terms of the agreement, bp will provide ENN with 300,000 tonnes per year of pipeline gas regasified
from LNG for two years from 1 January 2021 in Guangdong. The LNG will be received and regasified
through the LNG receiving terminal of Guangdong Dapeng LNG Company Limited (GDLNG)
where bp holds regasification capacity.
Dev Sanyal, executive vice president of
bp gas & 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 regasify
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:
“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.”
According to bp’s 2020 Statistical Review of
World Energy, global natural gas consumption
grew by 2% in 2019, with a 54 billion cubic
metres increase in LNG exports. The strong
growth was boosted by China, where the
28
country’s LNG imports rose by 11.3 billion
cubic metres, making it the biggest increase in
a single country.
“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 &
solutions for China.
To date, bp is the first international energy
company to invest in an operating LNG
terminal in China. GDLNG, which bp has
a 30% stake in, is China’s first pilot LNG
import and regasification terminal. Dongguan
ENN is an important customer of GDLNG,
cooperating more than ten years. For the past
decade, GDLNG has delivered approximately
50% of the accumulative gas consumption to
its customers in Guangdong region, making it
one of the most utilized terminals in 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.”
bp is one of the leading foreign investors in
the Chinese oil and gas sector. bp’s business
activities in China include oil and gas
exploration and development, petrochemicals
manufacturing and marketing, aviation fuel
supply, oil products retailing, lubricants
blending and marketing, oil and gas supply
and trading, LNG terminal and trunk line
operation and chemicals technology licensing.
Building on its business successes in China, bp
has also expanded partnerships with Chinese
national energy companies internationally. •