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BP and Enagás join forces on lower carbon transport fuels in Spain

Jul 07, 2020
2 min read
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BP Oil Spain and Spanish gas grid operator Enagás have entered an agreement to jointly explore commercial opportunities to promote the deployment of lower carbon transport fuels in Spain.

The agreement focuses on three main areas: infrastructure and supply of liquefied natural gas (LNG) and compressed natural gas (CNG) for transport; production and promotion of renewable gas in the Spanish market; and support of innovation projects. It was signed electronically by Luis Aires, president of bp Oil Spain, and Marcelino Oreja, chief executive of Enagás.

Enagás will develop LNG and CNG supply infrastructure, including points of sale, for deployment at bp-operated service stations and other third-party facilities under the bp brand, aiming to promote the use of these lower emission fuels in the Spanish automotive sector.

Enagás and BP have also agreed to jointly promote the use of renewable gas (or biogas), obtained by the anaerobic decomposition of wastewater and other biowaste. After purification, biomethane is produced – a renewable, local and storable energy source that results in lower net carbon emissions than conventional fuels and natural gas. It can be transported through existing gas infrastructure.

BP will acquire the biomethane produced by the Enagás start-up, BioEnGas, and the businesses will collaborate to create a national market for the sale and purchase of the product. They will also look to identify new opportunities for consumption, including the potential supply of biogas and biomethane to the BP refinery in Castellón, as well as the development of green hydrogen production.

In addition, the companies will also look for opportunities to jointly support entrepreneurial and corporate venturing projects in areas of innovation, energy transition and sustainable mobility.