Europe

China’s Shenzhen Energy signs long-term LNG contract with BP


China’s Shenzhen Energy Group has signed a long-term agreement
with oil major BP to buy liquefied natural gas (LNG), aiming to
lock in supplies with gas-fired power generation poised to surge in
the world’s second-largest economy, Trend reports with reference to Reuters.

The agreement is Shenzhen Energy’s first long-term international
LNG contract and its first long-term contract with BP Singapore,
the Chinese company said in a statement on Friday.

The statement did not specify details of the agreement,
including the duration of the contract.

“To meet the demand of Guangdong province and Shenzhen city for
energy security and stability, Shenzhen Energy Group is making
efforts to promote the construction of gas power plants,” it
said.

“It is estimated that around 2024, as the gas power plants go
into operation, the group’s total demand for natural gas will
significantly rise.”

China’s LNG importers are widely expected this winter to avoid
the spot market, where prices have risen sharply, relying instead
on Russian supplies and long-term contracted volumes.

QatarEnergy has signed a 27-year deal to supply LNG to China’s
Sinopec in the longest such agreement to date, as volatility drives
buyers to seek long-term supplies.


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