BP and the China National Offshore Oil Corp. (CNOOC) signed a heads of agreement regarding the supply of up to 1.5MTPA of liquefied natural gas (LNG) over 20 years starting in 2019, the supermajor announced on 17 June 2014.
The agreement was signed in London by BP Executive Vice President Dev Sanyal and CNOOC Chairman Wang Yilin in the presence of UK Prime Minister David Cameron and Chinese Premier Li Keqiang.
Bob Dudley, BP Group Chief Executive said: “This is a significant deal for BP and China but it also marks a step up in global connectivity in the gas market. This is important for all countries and regions looking at the diversity of energy supply and energy security - it gives BP greater flexibility to respond to the changing energy demands from Europe, Asia and other regions.
“We are pleased to support China’s commitment to improving its air quality. This agreement is the first long-term LNG supply deal wih China where BP is the sole supplier and it should play a crucial role in enhancing China’s energy diversification and supporting its economic growth.”
A full commercial contract is expected to be agreed in mid-2014. BP would expect to supply LNG from its global portfolio, using its own LNG tanker fleet and chartered ships delivering gas to a number of terminals in China.
Image: Bob Dudley/BP plc