BP and Enagás Join Forces to Promote Emissions Reduction Projects in Spain

Source Company Press Release
Company BP Plc., Enagás
Tags Country: Spain, M&A: Asset Deal, Deals, Segment: LNG
Date July 07, 2020
  • The agreement has three lines of action: the development of natural gas infrastructures in the field of sustainable transport; the production and promotion of renewable gas consumption and the promotion of entrepreneurship and innovation projects.
  • The objective is to promote the role of renewable gases in the energy mix, helping to reduce the carbon footprint

BP Oil España and Enagás have signed an agreement to promote emission reduction projects in Spain. The purpose of the same is to promote the development of projects in three lines of action: the promotion of liquefied natural gas (LNG) and compressed natural gas (CNG) infrastructures in the field of sustainable transport; the production and incentive of the consumption of renewable gases, and the promotion of entrepreneurship and innovation projects. The agreement has been signed electronically by Luis Aires, president of bp Oil Spain and Marcelino Oreja, CEO of  Enagás.

Enagas, through its subsidiary Scale Gas, will develop liquefied natural gas (LNG) and compressed natural gas (CNG) outlets in the bp Service Station network, thus promoting the use of a low-energy source in emissions as fuel in the automotive sector. 

Another objective of the agreement will be to promote the use of renewable gas in the Spanish market, helping to reduce the carbon footprint and enhancing its role in the energy mix. To do this, bp will acquire the biomethane produced by the Enagás company, Bioengas, and will also collaborate in creating a national market for the sale and purchase of this product and in identifying new consumption opportunities.  

bp's strategic objective is to supply biomethane from its LNG and compressed gas gas stations, as well as the possibility that the bp Refinery in Castellón is supplied through biogas, biomethane or hydrogen plants derived from biogas projects, online with the strategy towards eco-fuels.

This alliance contemplates the joint support and development of entrepreneurial and corporate venturing projects in the fields of open innovation, energy transition and sustainable mobility.

In February 2020, new bp CEO Bernard Looney announced a new purpose for the company, reimagining energy for people and the planet, and a firm intention to reinvent bp in order to meet the greatest challenge ever. has society on a global scale: Climate change.

Since then, bp has faced an unprecedented challenge, becoming a zero net emissions company by 2050 or earlier, and helping the world build a zero net emissions economy. The current market disruptions only reaffirm the need to achieve the purpose of re-imagining energy, carrying out the greatest transformation the company is facing in its 110-year history.

To do this, gradually, bp has focused investments on low-emission activities. A path started several years ago, to which the agreement with Enagás is added.

In line with its commitment to achieve carbon neutrality by 2050, Enagás is committed to the development of renewable gases -green hydrogen and biomethane-, as key solutions for the decarbonisation of sectors difficult to electrify, and for the use of liquefied natural gas as a sustainable alternative for transport.

The company is developing at its Cartagena plant the first pilot project to inject green hydrogen into a natural gas network in Spain with the aim of reducing the plant's carbon footprint, and it has a logistics chain in its regasification plants integrated for the supply of liquefied natural gas, LNG (small scale and bunkering) as fuel in the transport sector.

Among other recognitions in the ESG field (Environmental, Social and Governance) in the first quarter of the year, the company has been included in the 'A List' of CDP Climate Change, with the highest rating of its sector in this climate action index. . Furthermore, Enagás has been recognized as the world leader in its sector in the Dow Jones Sustainability Index, an index in which it has been included for 12 consecutive years.

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