Home General Energy News BP signs 10-year pipeline gas deal with China’s Shenzhen Gas

BP signs 10-year pipeline gas deal with China’s Shenzhen Gas

BP signs 10-year pipeline gas deal with China’s Shenzhen Gas

BP has signed a sales and purchase agreement with a unit of China’s Shenzhen Gas Group Co Ltd to supply piped natural gas for 10 years starting 2023, BP said in a statement on Wednesday.

Under the agreement, BP will provide Shenzhen Sino-Benny LPG Co Ltd, a wholly-owned unit of Shenzhen Gas, with up to 300,000 tonnes a year of pipeline gas.

The gas will be supplied through the liquefied natural gas (LNG) receiving terminal of Guangdong Dapeng LNG Company Ltd in Shenzhen, where BP holds regasification capacity.

BP also said the fuel will be indexed to international LNG prices.

The company has a similar deal with Guangdong-based Foran Energy Group to supply pipeline gas from the same terminal with supplies starting 2021.
Source: Reuters (Reporting by Chen Aizhu and Jessica Jaganathan; editing by Uttaresh.V)

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