China is becoming one the biggest energy consumers, giving the U.S. a run for its money, or should I say energy.

Image © BP P.L.C.:

China (FXE, quote), in an effort to reduce reliance on “dirty energy” and secure cheaper energy, has entered into a contract with United Kingdom’s oil behemoth BP (BP, quote) for natural gas.

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

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