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BP, CNPC Align For Shale Gas Exploration
Posted On Oct 23 2015
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The company also signed a multibillion dollar deal to supply liquefied natural gas to state-owned China Huadian Corp., the country’s largest gas-fired power generator.
The agreements are part of a host of deals signed during Chinese President Xi Jinping’s visit this week to London.
Pricing terms of the contract were not disclosed but BP stated that the deal was worth up to $10bn. (CNPC) to cooperate on the exploration for gas in the Sichuan Basin in China and on Chinese fuel retailing ventures in the future.
Meanwhile, earlier today ICBC Financial Leasing Co, China’s biggest leasing company by assets, said that it has signed an $869 million agreement with BP Shipping to lease 18 oil vessels, the first business deal between the two companies.
Sourcing for the LNG was not disclosed.
This would coincide with the start-up of the three-train, 13.9mtpa US Freeport LNG export plant in Texas. “This strategic partnership… further cements the relationship between China and the United Kingdom as global business partners”.
Dev Sanyal, BP’s executive vice president for strategy and regions, remarked that they “see great potential for enhanced cooperation and collaboration between both sides”, adding that the “agreements will demonstrate [their] long-standing commitment to China”. The oil field produced around 1.34 million barrels per day (bpd) in 2014. In its battle against climate change, the country has asked for worldwide support and until now many countries, including United Kingdom, has stepped forward to provide assistance to the world’s second largest economy. The world’s second largest economy has already planned to invest $315-$360 billion to promote carbon economy and establish global energy network.
China’s energy production is expected to increase 47%, while consumption is estimated to jump 60% by 2035, BP China President Edward Yang said in a statement. The company has entered into an agreement with the Chinese company that will diversify its investment and surge China’s growth.
