BP has signed a $10bn deal to sell up to one million tonnes of liquefied natural gas (LNG) a year to power generation company China Huadian (Huadian) over the next 20 years.
BP Group chief executive Bob Dudley said: “This marks another long-term LNG supply deal between BP and Chinese buyers and it will play an important role in enhancing China’s energy diversification and supporting its economic growth.
“Not only does it strengthen China’s connections to BP and the UK as global trading partners, it also supports China’s commitment to improving its air quality and reducing its emissions through the use of lower carbon fuels.”
According to BP, the latest agreement will add several billion dollars in future trade to the company’s business with China.
“This agreement is not only in line with the common objectives of our companies, but it also matches the energy policies of China and the UK.”
Supporting continued diversification and growth of the Chinese economy, the agreement with Huadian will also bolster the connectivity of global gas markets, which is vital for countries that look out for diverse and secure energy supplies, BP said.
Huadian chairman Li Qingkui said: “This agreement is not only in line with the common objectives of our companies, but it also matches the energy policies of China and the UK.
“Lower carbon power generation is part of Huadian’s mission to bring greater value to the economy and society while growing ‘Green Huadian’ into a world-class energy group.”
The agreement is also expected to help China diversify its energy supply.
In a separate announcement, BP said it has signed an agreement with and China National Petroleum (CNPC) on strategic cooperation covering potential shale gas exploration and production in the Sichuan Basin.
The agreement will also cover future fuel retailing ventures in China and other international partnerships and is set to further facilitate the two companies’ joint efforts in exploring opportunities on a global scale.