London-based oil and gas major BP and China Huadian Corporation (Huadian) have signed a sale and purchase agreement for BP to sell Huadian up to 1 million tonnes of liquefied natural gas (LNG) per year worth up to USD 10 billion over the next 20 years.
The agreement was one of several signed in London during this week’s visit to the UK by China’s President Xi Jinping, and signed in the presence of President Xi and UK Prime Minister David Cameron.
“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,” said Bob Dudley, BP Group Chief Executive.
“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.”
Huadian is one of the five largest state-owned power generation companies in China and the country’s largest gas-fired power generator.
“We expect China’s energy production to rise 47 percent and its consumption to grow 60 percent by 2035, making it the world’s largest energy importer,” said Edward Yang President of BP China.
“This agreement with Huadian further demonstrates BP’s long term commitment to helping China diversify its energy supply and improve air quality. We are pleased to serve as China’s trusted energy partner, now and in the future.”