BP to sign $20billion LNG supply deal with China’s CNOOC

June 17, 2014 | Budget & Investment, LNG & LPG, North Sea & Western Europe

Moscow, Russia | – British multinational oil and gas major BP plc will sign a deal worth around $20 billion later on Tuesday to supply China National Offshore Oil Corporation (CNOOC) with liquefied natural gas (LNG), BP Chief Executive Bob Dudley said at the World Petroleum Congress taking place in the Russian capital, Moscow.

Dudley said the agreement between the two companies would be signed in London; as British Prime Minister David Cameron is due to announce a series of trade deals to coincide with the arrival of the Chinese Premier Li Keqiang for a three-day visit to the United Kingdom.

“It is a 20-year supply agreement on LNG. It is a fair price for them and a fair price for us. It is a good bridge between the UK and China in terms of trade,” Dudley said.

BP already supplies CNOOC with LNG from Indonesia.