BP and China Huadian Corporation (Huadian) signed a sale and purchase agreement on Thursday that calls for BP to sell Huadian up to 1 million tonnes of liquefied natural gas (LNG) per year.
The agreement was one of several signed in London during a state visit to the UK by the President of The People’s Republic of China Xi Jinping this week and was signed in the presence of President Xi and UK Prime Minister David Cameron.
“This marks another long-term LNG supply deal between BP and Chinese buyers and it will play an important role in enhancing China’s energy diversification a dnd supporting its economic growth,” BP Group Chief Executive Bob Dudley said.
The deal with Huadian along with other new agreements with Chinese firms are expected to add several billion dollars in future trade to the BP’s business with China.
“BP has been committed to doing business in China for more than 40 years and we’re pleased to enter into an agreement that supports continued diversification and growth of the Chinese economy,” Dudley said.
Huadian is one of the five largest state-owned power generation companies in China and the country’s largest gas-fired power generator.
“Lower carbon power generation is part of Huadian’s mission to bring greater value to the economy and society while growing ‘Green Huadian’ into a world-class energy group. We look forward to further cooperation with BP in the near future and actively contributing to energy security and a cleaner energy future,” Huadian chairman Li Qingkui said.