BP to supply natural gas to SPIC over a 10-year period

“Under the background of carbon peak and carbon neutrality, the Guangdong company (overseas company) is willing to continue to work hand in hand with BP China in the future to promote the development of clean and low-carbon energy in the co-operation zone and build the Hengqin Zero Carbon Island.”

Hengquin is an island located within Zuhai city, in China’s Guangdong province (and adjacent to Macau). The Chinese Government is building the Guangdong-Macau deep co-operation zone to boost the region’s economy.

BP is the first international energy company in China to invest in an LNG terminal in operation, and owns 30% of the shares of Guangdong Dapeng Terminal.

Guangdong Dapeng is China’s first LNG import and regasification terminal pilot project and accounts for about 50% of Guangdong’s natural gas consumption.

State Power Investment Corp is one of China’s largest state-owned generation utilities. The contract with BP is part of a move towards direct procurement of gas from private players, as opposed to relying on national oil companies for energy supply.

China is a rapidly expanding market for natural gas. In recent months, US energy firms Cheniere and Venture Global have signed high-profile deals with Chinese buyers.

Cheniere signed a deal with ENN Energy, a private Chinese firm, to supply LNG to ENN over a 13-year period, while Venture Global’s deal with Sinopec is the single-largest LNG trade agreement to date in terms of volume between the United States and China.