Oil and gas firms BP and China National Petroleum Corporation (CNPC) have signed a deal to expand their global cooperation, including on carbon emissions trading, the companies announced.
The deal was struck in London on Wednesday in association with Chinese President Xi Jinping’s state visit to the UK. State-owned CNPC is China’s biggest integrated energy company.
“BP has been committed to doing business in China for more than 40 years and we’re pleased to expand a partnership that supports continued growth of the Chinese energy sector,” said Edward Yang, president of BP China.
“We expect China’s energy production to rise 47% and its consumption to grow 60% by 2035, making it the world’s largest energy importer. Through this agreement and others, BP is committed to being one of China’s preferred energy partners now and in the future.”
The announcement did not specify how the two companies will work together on carbon markets, but both have several facilities that will be covered by China’s national ETS from 2017.
BP participates in the Guangdong and Shenzhen carbon markets, with former Mercuria carbon trader Li Xing working out of its Singapore desk.
By Stian Reklev – email@example.com