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BP calls for investment in long-term energy deals, storage to meet future demand

By Reuters

<div> <p>By Nidhi Verma</p> <p><span class="caps">NEW</span> <span class="caps">DELHI</span> – Global energy major BP called on Thursday for more investments in longer term energy contracts, storage and the diversification into various fuels to build a robust energy system in future.</p> <p>The call comes after coal, oil and gas prices surged to all-time or multi-year highs in recent weeks hammering utilities and consumers from Europe to China, raising inflationary pressures and putting at risk a global recovery from the <span class="caps">COVID</span>-19 pandemic.</p> <p>Globally buyers and consumers are advocating for higher investment in energy assets for continued and affordable supplies.</p> <p>“I think the real question is not about how it looks today because, in general, things are being supplied today, I think the question is what would it look like as we head into the winter months,” BP Chief Executive Bernard Looney said at the Indian Energy Forum.</p> <p>“People are doing what they can to get ready for that but I think what it means in the longer term…we must invest into things like longer term contracts, invest into natural gas which remains a great balancer in the system, invest into storage and invest into diversification.”</p> <p>Some countries are already topping up energy storage to avoid shortages during winter, Looney said.</p> <p>On Wednesday, BP signed a 10-year piped natural gas supply deal with a unit of China’s Shenzhen Gas Group Co Ltd starting 2023.</p> <p>BP also aims to supply 15% of India’s gas needs, Looney said.</p> <p>Separately, BP wants to strengthen its energy-trading operation, one of the world’s largest, which will benefit from the company’s new focus on electric vehicle (EV) charging business.</p> <p>“We intend to double down on and grow, particularly here in Europe, particularly in China and looking at the United States,” Looney said referring to BP’s EV charging business.</p> <p>Earlier this month, small British energy supplier Pure Planet, in which BP holds a stake of about 24%, ceased trading as many suppliers struggled with record wholesale energy prices.</p> <p/> <p>(This story corrects to EV charging business, not electricity, in paragraph 9 and 10)</p> <p/> </div>