HomeNewsPetroChina, bp awarded 20 year access to Europe's Gate LNG terminal

PetroChina, bp awarded 20 year access to Europe's Gate LNG terminal

5/26/2023

(Reuters) - PetroChina International and energy giant bp have won a tender that will allow each to handle 2 billion cubic meters of gas annually for 20 years at Rotterdam's Gate terminal, the Chinese state firm's first long-term access to a European gas terminal.

PetroChina said it is establishing and gradually expanding its global liquefied natural gas (LNG) portfolio through long-term investments. The commercial operations are expected to start in the third quarter of 2026, it said in a statement.

Chinese firms are set to become a major trading force in the global liquefied natural gas market in coming years, thanks to liberalization at home and recently signed long-term contracts for record amounts of LNG from U.S. suppliers.

Several Chinese state-run companies have set their sights beyond the domestic market and are building up trading teams in foreign centers such as Singapore and London.

"This is a smart move by PCI taking volume at Gate, it gives them a European hub base to offer out to European takers and expand their already impressive global portfolio," said Toby Copson, global head of trading at Trident LNG.

LNG has become a major alternative to pipeline gas after Russia reduced its pipeline gas deliveries to the European Union by 80%, in the wake of Moscow's invasion of Ukraine last year.

bp said that it sees LNG as an essential part of the energy transition and its own pivot to becoming an integrated energy company.

"As bp aims for an LNG portfolio of 30 million tons by 2030, this award provides additional regasification capacity in a key location to support security of supply for our European customers," said Jonty Shepard, bp's vice president for global LNG trading and origination.

Gas Access to Europe (GATE) is the Netherlands' first liquefied natural gas (LNG) terminal and opened in September 2011. It is a major port for LNG deliveries into Europe.

Related News

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}