BP Signs $10bn LNG Supply Deal with China Huadian

BP on Wednesday signed a sale and purchase agreement China Huadian Corporation (Huadian) to sell Huadian up to 1 million tonnes of LNG per year worth up to $10 billion over the next 20 years.

The agreement was inked during Chinese President Xi Jinping’s state visit to the UK.

“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 and supporting its economic growth,” said Bob Dudley, BP Group Chief Executive. “Not only does it strengthen China’s connections to BP and the UK as global trading partners, it also supports China’s commitment to improving its air quality and reducing its emissions through the use of lower carbon fuels.”

“This agreement also strengthens the connectivity of global gas markets, which is important for countries seeking more diverse and secure energy supplies,” Dudley added.

Huadian is one of the five largest state-owned power generation companies in China and the country’s largest gas-fired power generator.