BP to Sign $20 Billion LNG Supply Deal with China’s CNOOC
Posted on Jun 17, 2014 in LNG Exports, Markets and Competition | Comments Off on BP to Sign $20 Billion LNG Supply Deal with China’s CNOOC
BP is scheduled to sign a $20 billion deal to supply China National Offshore Oil Corporation (CNOOC) with LNG over a span of 20 years. BP is said to be likely to source much of the LNG for the deal from its contracted capacity at the Freeport LNG liquefaction facility near Freeport, Texas. Reuters reports the deal will increase China’s LNG intake by at least 1.5 million tonnes each year and is indicative of China’s status as a key buyer of US LNG. Long-term supply contracts lasting 20 years or longer such as this one are becoming less common, as buyers hope that an influx of supply will bring down prices.