1. Home
  2. News and insights
  3. Press releases
  4. bp completes integrated gas value chain in China with delivery of LNG for downstream customers

bp completes integrated gas value chain in China with delivery of LNG for downstream customers

Release date:
25 January 2021
bp's first cargo of gas under new terminal usage agreement arrived in Shenzhen, China

bp has begun to directly supply gas customers in China with gas from liquefied natural gas (LNG) that it has imported into the country. This is the first time that bp has created a fully integrated gas value chain into China, directly connecting upstream resources, transportation and trading with downstream gas customers.

 

The first cargo of gas delivered under bp’s new terminal usage agreement at the Guangdong Dapeng LNG Company Limited (GDLNG) import terminal in Shenzhen, Guangdong Province, arrived on 24 January. Under the agreement, bp has 600,000 tonnes a year tolling regasification capacity at GDLNG.

 

"Today represents an important milestone for our operations in China, growing our presence and connecting right along the gas value chain. With our world class technologies, marketing and trading capabilities, we have developed an innovative, diversified and flexible integrated business model enabling us to both provide more LNG to the region and also increase our access to downstream gas markets"

 

Federica Berra, bp’s senior vice president of integrated gas and power

Last year bp signed gas supply agreements with ENN Group and Foran Energy, both in Guangdong. bp will supply each with 300,000 tonnes per year of pipeline gas, re-gasified from LNG, for two years from 2021

 

Federica Berra, bp’s senior vice president of integrated gas and power, said: “Today represents an important milestone for our operations in China, growing our presence and connecting right along the gas value chain. With our world class technologies, marketing and trading capabilities, we have developed an innovative, diversified and flexible integrated business model enabling us to both provide more LNG to the region and also increase our access to downstream gas markets.”


China has announced it aims for peak carbon dioxide emissions before 2030 and to become carbon neutral by 2060.


Simon Yang, bp China president and bp senior vice president, regions, cities & solutions for China, added: “bp is proud of our long-term partnerships with stakeholders in growing markets like China. Increasing the availability of natural gas to customers across China supports and is aligned with the country’s aim to increasingly switch from coal to gas. We will continue to steadily grow our footprint here and more importantly support China in its aims for a better and cleaner energy future.”  


The first LNG truck fleet from the Shenzhen Dapeng LNG Marketing Company (SZDP) also made its inaugural journey.


bp holds a 30% interest in GDLNG.

Notes to editors

 

  • bp is one of the leading foreign investors in the Chinese energy sector. bp’s business activities in China include aviation fuel supply, oil products retailing, lubricants blending and marketing, oil and gas supply and trading, LNG terminal and trunk line operation, future mobility solutions as well as venturing. Building on its business successes in China, bp has also expanded partnerships with Chinese national energy companies internationally. Further information about bp China is available on www.bp.com.cn.
  • bp has been an important player in China’s gas market. bp was the first international oil and gas company with an investment in an operating Chinese LNG terminal - Guangdong Dapeng LNG (“GDLNG”). GDLNG has accounted for 22% of China’s total LNG imports.
    • On 9 July 2020, bp signs gas supply agreement with ENN, integrating international gas value chains to create lower carbon energy solutions for China.
    • On 21 July 2020, bp signs gas supply agreement with Foran Energy, another significant move supporting China’s low carbon transition.

Further information

 

Contacts

 

bp press office, London: +44 (0)20 7496 4076, bppress@bp.com
bp press office, China: +86 (0)10 6589 3879, bpchinapress@bp.com

Cautionary statement

 

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), bp is providing the following cautionary statement. This press release contains certain forward-looking statements – that is, statements related to future, not past events and circumstances – which may relate to one or more of the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements are generally, but not always, identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. Actual results may differ from those expressed in such statements, depending on a variety of factors including the risk factors set forth in our most recent Annual Report and Form 20-F under “Risk factors” and in any of our more recent public reports.

 

Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.bp.com, or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.