CNOOC inks $20bn LNG deal with BP

Beijing: China National Offshore Oil Corporation (CNOOC) announced that it has signed a 20-year deal worth around $20b with British oil giant BP for LNG supply. The signing was attended by Chinese Premier Li Keqiang and British Prime Minister David Cameron.

Under the agreement, BP will supply up to 1.5m tons per annum 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, CNOOC said in a release.

"The agreement with BP will not only deepen the cooperation between both parties, but also further diversify the LNG supply of CNOOC," said Wang Yilin, chairman 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," Wang added.

By the end of May 2014, CNOOC had built and put six LNG receiving terminals into operation in Guangdong, Fujian, Shanghai, Zhejiang, Zhuhai and Tianjin respectively, with a total LNG receiving capacity of 24.8 mtpa. [18/06/14]

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