bp, OMV sign 10-year LNG supply agreement
Published on: Jul 28, 2023
The companies have agreed on a supply of up to 1 million tonnes of the alternative fuels starting in 2026.
bp and OMV have announced the signing of a long-term sale and purchase agreement for liquefied natural gas (LNG)supply. The partnership covers up to 1 million tonnes of LNG per year for 10 years from 2026.
Under the terms of the agreement, the British firm will provide the Austrian company with LNG from its global portfolio. The fuel will be received and re-gasified through the Gate LNG Terminal in Rotterdam, the Netherlands, where OMV holds regasification capacity, or other terminals in Europe.
“It is one of OMV’s key priorities to drive forward our ongoing diversification of supply sources that encompasses gas from our own production and external sources from Norway, as well as additional LNG volumes,” said Alfred Stern, Chairman of the Executive Board and CEO of OMV AG.
OMV intends to transition from an integrated oil, gas, and chemicals company to become a leading provider of innovative and sustainable fuels, chemicals, and materials, while taking a leading global role in the circular economy. By switching over to a low-carbon business, the firm aims to achieve net zero by 2050 at the latest.
“At bp, we see LNG as an essential part of the energy transition and essential for our own pivot to becoming an integrated energy company. Europe is a significant LNG market and this agreement with OMV further demonstrates our LNG supply capability in the region, supporting security of supply for our European customers,” adds Jonty Shepard, VP Global LNG Trading & Origination at bp.
bp’s purpose is to reimagine energy for people and the planet, the company’s goal is to be a net zero company by 2050, or sooner and help the world get to net zero, and a strategy for delivering on that ambition.
