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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 t/y of pipeline gas re-gasified from LNG for two years from 1 January 2021 in Guangdong. The LNG will be received and re-gasified through the LNG receiving terminal of Guangdong Dapeng LNG Company Limited (GDLNG). GDLNG is China’s first pilot LNG import and regasification terminal, in which BP holds a 30% stake.

Commenting on the news, 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 re-gasify LNG through a Chinese terminal and also directly supply gas to customers.’

According to BP’s 2020
Statistical Review of World Energy, global natural gas consumption grew by 2% in 2019, with a 54bn cm increase in LNG exports. The strong growth was boosted by China, where the country’s LNG imports rose by 11.3bn cm, 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.

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