FT: BP signs $20bn LNG deal with China

BP has signed a $20bn deal to supply China with liquefied natural gas over 20 years starting in 2019. Under the terms of the agreement, the UK oil and gas major will ship 1.5m tonnes of gas for Cnooc, the state-controlled Chinese energy group, per year.

The annual volumes – equivalent to 72bn cubic feet – represent more than a tenth of the 13m tonnes imported last year by Cnooc, which is ranked as China’s leading and the world’s third largest LNG importer.

Bob Dudley, BP chief executive, said the deal would help China’s drive in switching more of its energy supply from coal to less polluting hydrocarbons.

“We are pleased to support China’s commitment to improving its air quality,” he said. The agreement was signed by company executives in London in the presence of David Cameron, UK prime minister, and Li Keqiang, Chinese premier.
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