On June 17th, China National Offshore Oil Corporation (CNOOC) and BP signed an agreement regarding long-term LNG sale and purchase at London, UK. Under the witness of Chinese Premier Li Keqiang and British Prime Minister David Cameron, Mr. Wang Yilin, Chairman of CNOOC, and Mr. Dev Sanyal, EVP of BP, signed the agreement, the company said in its press release.
According to the Heads of Agreement signed by the parties, BP is to supply up to 1.5 million tones per annum (mtpa) of LNG from its global portfolio to CNOOC over 20 years starting in 2019. The parties expect to reach a full commercial contract in mid-2014.
Mr. Wang Yilin, Chairman of CNOOC, said: "The agreement with BP will not only deepen the cooperation between both parties, but also further diversify the LNG supply of CNOOC. CNOOC will continuously strive to acquire competitive natural gas resources around the world, and to make positive contribution to securing clean energy supply as well as protecting ecological environment of China."
Ever since year 2001, CNOOC and BP have built sound relationship throughout the LNG value chain. The execution of this agreement sets a new milestone in the cooperation between the parties.
As the pioneering enterprise of China's LNG industry, CNOOC imported more than 13 million tones of LNG, accounting for 72% of China's total LNG importation, in year 2013. By the end of May 2014, CNOOC has built and put 6 LNG receiving terminals into operation at Guangdong, Fujian, Shanghai, Zhejiang and Tianjin, with a total LNG receiving capacity of 24.8 mtpa. Meanwhile, the Hainan, Shenzhen, Yuedong LNG receiving terminals are currently under construction and will be commissioned before the end of 2015.