ENGIE and Beijing Enterprise Group signed contract to supply LNG to Beijing City and an Expand Cooperation Agreement
On the occasion of the visit of Chinese Prime Minister Li Keqiang’s delegation to France, Pierre Chareyre, Executive Vice President, in charge of Global Gas & LNG of ENGIE, signed today in Toulouse an Agreement with Wang Dong, Chairman of Beijing Enterprise Group (BEG), to supply LNG to Beijing City and to expand cooperation. Chinese and French Prime Minister Li Keqiang and Manuel Valls were present at the signing ceremony.
On the basis of this Agreement, ENGIE and BEG are willing to carry out cooperation in the following areas:
- ENGIE will provide BEG two LNG carriers to meet Beijing City’s natural gas needs in winter, the first delivery will be in November and the second in January.
- ENGIE and BEG are willing to make Co-investment and carry out cooperation in some major energy projects in China.
- ENGIE is willing to accompany the international development of BEG. The two parties will identify some natural gas liquefaction projects in third party countries and make Co-investment.
Today’s LNG Supply Contract and Expand Cooperation Agreement is the consolidation of the two Groups’ bilateral cooperation agreements signed in 2014 and 2015, and it keeps pace with the new strategy of the two parties. The Agreement also reiterates the common vision of the two Groups to enlarge cooperation under the internationalization context.
ENGIE in China
ENGIE has been present in China for over 40 years. In 2008, ENGIE opened its first representative office in China and started to develop relationship and cooperation with Chinese partners in the energy field such as: natural gas, LNG, gas infrastructure, energy services and engineering services, for projects in China as well as in overseas markets.
In power generation, ENGIE supports joint carbon emissions reduction projects (Clean Development Mechanisms–CDM), while its engineering teams assist in the development of the Taishan EPR and support the development of hydroelectric projects in other countries with Chinese partners.
In natural gas, ENGIE signed a worldwide partnership in 2011 with the Chinese sovereign fund CIC granting the latter a 30% share in ENGIE exploration and production activities. The Group sold 2.3 million metric tons of LNG to the China National Offshore Oil Corporation (CNOOC), with deliveries beginning in 2013, and installed the first floating regasification terminal in China. In 2012, ENGIE also began a cooperation agreement with PetroChina to explore the upstream gas potential in Qatar, then extended the agreement to gas storage in China in 2013 (development support for six sites). The Group currently assists Shanghai Gas Group, a unit of Shenergy Group, for the expansion of one of its LNG terminals.
In energy services, ENGIE signed in 2014 two major cooperation agreements to develop energy projects in the large Chinese cities: the first one with Beijing Enterprises Group in Beijing and the second one with Shenergy in Shanghai. In January 2015, ENGIE and Sichuan Energy Investment Distributed Energy Systems created a Joint Venture for the joint development and the operation of Guangan Huixiang Innovation Park Distributed Energy Project, the first Distributed Energy Project in an industry park in Southwest China.
ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation, security of supply and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 152,900 people worldwide and achieved revenues of €74.7 billion in 2014. The Group is listed on the Paris and Brussels stock exchanges (GSZ) and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).