Chinese independent utility Foran Energy has signed a gas supply deal with BP that will see the utility company receive 300,000 t/yr of pipeline gas from the 6.7mn t/yr CNOOC-operated Dapeng LNG receiving terminal over two years, starting from 1 January 2021.
BP will supply pipeline gas within south China’s Guangdong province from Dapeng under both contracts, with Foran’s supplies distributed to its customers in the Guangdong city of Foshan. BP holds regasification capacity at Dapeng through a 30% stake in the terminal, while Foran holds a 2.5% stake in the terminal where it is also a foundation customer. The transaction allows BP to integrate its upstream gas resources, transportation and trading into China’s downstream markets.
Diversifying supply sources
Foran Energy supplied over 2.2bn m³ of gas to city gas enterprises in Guangdong last year. It intends to develop its midstream and upstream gas businesses, as well as expand its international procurement and diversify its supply sources.
The firm entered the LNG spot market for the first time this year and bought one spot cargo for delivery over 25-30 June to the 3.5mn t/yr CNOOC-operated Zhuhai terminal in Guangdong.