British supermajor BP has signed a new natural gas supply deal in China’s Guangdong province, similar to an agreement announced in early July.
The company signed an agreement with Chinese utility Foran Energy, former Foshan Gas, for the supply of 300,000 tonnes per year. The volume will be regasified and shipped via pipeline to clients, Kallanish Energy learns from BP.
Deliveries are set to begin on 1 January 2021 and last for two years. The liquefied natural gas will be received and regasified through the Guangdong Dapeng LNG terminal in southern China, where BP holds a 30% stake.
The companies are partners in the facility, which was China’s first LNG receiving terminal.
“This is an innovative model that integrates upstream gas resources, transportation and trading into China’s downstream markets,” BP said in statement.
On July 9, BP announced an exact same deal with ENN Group, and in April, Foran Energy announced a 600,000 tonnes per year deal with BP.
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 (Bcm) increase in LNG exports. The strong growth was boosted by China, where the country’s LNG imports rose by 11.3 Bcm, making it the biggest increase in a single country.
This post appeared first on Kallanish Energy News.