BP plc and state-owned China National Petroleum Corp. on Wednesday agreed to expand their global partnership, which covers potential shale gas exploration in the Sichuan Basin, as well as global liquefied natural gas (LNG) trading opportunities.
The agreement is expected to add billions in future trade to BP's already significant business in the country. In addition to exploring opportunities within China, the partners agreed to "explore oil and LNG trading opportunities globally..."
Last year BP clinched a 20-year contract worth close to $20 billion to supply also state-owned China National Offshore Oil Corp. (CNOCC) with LNG, including from a proposed export facility in Freeport, TX (see Daily GPI, June 17, 2014). BP, which already supplies CNOOC with LNG from Indonesia, has contracts with Freeport LNG Expansion LP to export up to 4.4 million metric tons/year (see Daily GPI, Feb. 12, 2013). BP also is part of a consortium that wants to build a LNG export facility in Alaska to supply Asia-Pacific markets (see Daily GPI, May 28).
BP and CNPC also agreed Wednesday to work together on carbon emissions trading and share knowledge around technology and management practices.
"BP has been committed to doing business in China for more than 40 years and we’re pleased to expand a partnership that supports continued growth of the Chinese energy sector," said BP China President Edward Yang. "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. Through this agreement and others, BP is committed to being one of China's preferred energy partners now and in the future."