Transforming energy major BP plans to more than double its LNG portfolio to over 30 million tonnes per annum by 2030 as it zones in on four areas of business growth.
Speaking on the second day of "BP Week’" executive vice president of trading and shipping Carol Howle said that, along with its hydrocarbons business, BP plans to “supercharge” certain areas of its business activities.
She named LNG as one of these along with the company’s global power business, its bioenergy portfolio and low-carbon trading products.
Howle said that BP — which is transforming itself into an integrated energy company with what it describes as "bold and ambitious" emissions reductions targets — had an LNG portfolio of 15 mtpa in 2019.
The company had boosted its delivered volumes by 75% between 2017 and 2019.
She said BP’s objective is to grow its volumes to over 30 mtpa by 2030 through a combination of equity-led and merchant positions, plus sales into new and existing markets.
Howle said the company’s equity and contracted volumes alone, including 4.4 mtpa at Freeport LNG and 3 mtpa at Mozambique LNG, are adding about 12 mtpa to the portfolio.
She said this shows that the company is “well on its way” to its 2030 target.
Howle said the larger portfolio gives BP the ability to create additional value during short-term disruptions.
She detailed that during the height of the coronavirus crisis, the company had been able to leverage flexibility in its merchant volumes and shipping capacity to optimise its Trinidad LNG offtake.
Howle said the company will also focus on customers, adding that BP already has 10 mtpa of sales across China, Japan, Taiwan, Thailand, Singapore, India, Croatia, the Netherlands, the Dominican Republic, Spain and Brazil, along with flexible regasification capacity in Spain and the UK.
Aside from LNG, she named these as the company’s global power business, its bioenergy portfolio and low-carbon trading products.
Howle’s presentation was focused on integration.
She spoke about working across BP’s teams to develop new hubs such as the 3GW integrated LNG-to-power project Porto Acu project in Brazil.
Howle said BP will also look to develop a carbon-neutral LNG offer, which will bundle physical gas with carbon offsets from BP’s own low-carbon production.
Last year, BP sold over 15m tonnes of carbon offsets in global markets.
By 2025, BP expects to have access to carbon credits from about 100 projects from a wide range of products such as avoided deforestation, mangrove restoration and afforestation, she said.
Howle only fleetingly referred directly to shipping in her presentation but vessels dominated a short video showing her division’s activities.
This detailed that BP has about 300 ships on the water at any given time with BP moving about 240m tonnes of oil and gas and products annually.
