British supermajor BP’s Chinese arm has signed an MoU with PetroChina’s China Southern Petroleum Exploration and Development to work on CCUS projects onshore Hainan, reported Upstream.
The agreement aims to advance the firms’ collaboration on international projects. In addition, the two companies have agreed on shale gas exploration, development, and commercialisation in China. The partnership has now been extended to include low-carbon projects.
“By signing the MoU on the Hainan CCUS regional centre project, we are honoured and excited to be starting another chapter in our partnership,” BP CEO Bernard Looney said.
The companies will draw on BP’s expertise in developing the UK’s Net Zero Teeside Power project — the first gas-fired power project with CCUS technology. The project’s proposed combined cycle gas turbine will have an output of up to 860 megawatts of low-carbon electricity. Its carbon transport and storage infrastructure will capture up to two million tonnes of CO2 a year.
BP CEO Bernard Looney said the MoU is part of a partnership inked in 2015 with PetroChina’s parent company China National Petroleum Corporation. The agreement has recently been extended to 2026.
Image by BP contracted photographer Graham Trott