BP & CHINA: $20 B
BP has signed a $20bn deal to supply China with liquefied natural gas over 20 years starting in 2019.
Under the terms of the agreement, the UK oil and gas major will ship 1.5m tonnes of gas for Cnooc, the state-controlled Chinese energy group, per year.
The annual volumes – equivalent to 72bn cubic feet – represent more than a tenth of the 13m tonnes imported last year by Cnooc, which is ranked as China's leading and the world's third largest LNG importer.
Bob Dudley, BP chief executive, said the deal would help China's drive in switching more of its energy supply from coal to less polluting hydrocarbons.
"We are pleased to support China's commitment to improving its air quality," he said. The agreement was signed by company executives in London in the presence of David Cameron, UK prime minister, and Li Keqiang, Chinese premier.
The deal was part of a number of agreements signed during a state visit by the Chinese premier.
It follows a $400bn gas supply deal stuck between Gazprom of Russia and China National Petroleum Corp, China's largest state-owned oil company, in May that will run for 30 years from 2018.
In the past two years, Cnooc has also signed deals with BP's rival UK-listed gas supplier BG Group to supply a total of 8.6m tonnes a year from its LNG project in Queensland, Australia, under two separate 20-year deals.
|November, 17, 19:55:00|
|November, 17, 19:50:00|
|November, 17, 19:45:00|
|November, 17, 19:40:00|
|November, 17, 19:35:00|
|November, 17, 19:30:00|
REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.