BP has announced that it has signed an agreement to sell China Huadian Corp. up to 1 million tpy of LNG. The deal will be valued at up to $10 billion and will last for 20 years. It was signed in the presence of the President of The People’s Republic of China, Mr Xi Jinping, and the Prime Minister of the UK, David Cameron, during the former’s state visit to the UK. Huadian is a major Chinese state-owned power company, and operates the largest gas-fired power generator in the country.
Bob Dudley, the BP Group Chief Executive, 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.
“BP has been committed to doing business in China for more than 40 years and we’re pleased to enter into an agreement that supports continued diversification and growth of the Chinese economy.
“This agreement also strengthens the connectivity of global gas markets, which is important for countries seeking more diverse and secure energy supplies.”
Li Qingkui, the Chairman of Huadian, 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. We look forward to further cooperation with BP in the near future and actively contributing to energy security and a cleaner energy future.”
Edward Yang, the President of BP China, added: “We expect China’s energy production to rise 47% and its consumption to grow 60% by 2035, making it the world’s largest energy importer.
“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.”
Edited from press release by David Rowlands
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