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

Published 21/10/2021, 06:03
Updated 21/10/2021, 06:06
© Reuters. The logo of BP is seen at a petrol station in Kloten, Switzerland October 3, 2017. REUTERS/Arnd Wiegmann

© Reuters. The logo of BP is seen at a petrol station in Kloten, Switzerland October 3, 2017. REUTERS/Arnd Wiegmann

SINGAPORE (Reuters) - BP (LON: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. 

© Reuters. The logo of BP is seen at a petrol station in Kloten, Switzerland October 3, 2017. REUTERS/Arnd Wiegmann

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.

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