China is becoming one the biggest energy consumers, giving the U.S. a run for its money, or should I say energy.
The state-owned China National Offshore Oil Corporation's contract with BP is reported to be worth $20 billion dollars over 20 years.
China’s global energy project seems to be in full swing with two deals in less than two months. Earlier in May, China’s state-owned China National Petroleum Company and Gazprom (OGZPY, quote) made an agreement to pump fuel via pipeline from Russia’s (RSX, quote) Siberian wells to China's main depot centers.
Bottom Line: As natural gas (UNG, quote) and liquid natural gas or LNG become the preferred choice of non-renewable energy, commodity price should reflect the increase demand. This shift should bode well for integrated companies like BP as well as natural gas pipeline companies