BP, CNOOC Sign 20-Year LNG Deal
Agreement is for supply of over 1 million tons of LNG per year
BP and the China National Offshore Oil Corp. (CNOOC) have agreed to a deal for the supply of up to 1.7 million tpy (1.5 million T/yr) of liquefied natural gas (LNG) over 20 years starting in 2019.
“This is a significant deal for BP and China, but it also marks a step up in global connectivity in the gas market,” Bob Dudley, BP Group chief executive, said. “This is important for all countries and regions looking at the diversity of energy supply and energy security.”
Both companies are expected to agree to a full commercial contract by midyear. BP expects 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.