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Gas & low carbon energy financial disclosure

“To provide an increased focus on delivery of our low carbon strategy we have established a separate gas & low carbon energy segment. Our segment disclosures offer insight into our growth and returns, particularly in low carbon electricity. And the disclosures also recognise the potential for commercial integration of gas value chains with our low carbon businesses as we focus on the opportunity to provide cleaner, firm and affordable energy to customers.”
Dev Sanyal

Dev Sanyal, EVP gas & low carbon energy

The segment includes our gas & low carbon businesses. We provide segment financials each quarter along with a set of operational and financial metrics for each business, consistent with their level of maturity and which provide insight into their future growth potential.

Low carbon energy

In low carbon energy we plan to build capability and scale with capital discipline and a returns focus. Supported by our plans to increase capital expenditure, our low carbon growth strategy spans three focus areas and our new disclosures help track progress towards our strategic objectives.

 

Low carbon electricity disclosure

(quarterly, net to bp)
 
  • Installed renewables capacity (GW) (bp owned vs developed)
  • Developed renewables to Final Investment Decision (FID) (GW)  
  • Weighted average expected returns of renewables projects developed to FID (%)
  • Renewables pipeline by geography and technology (GW) (projects progressed by either bp or partners satisfying stage gate criteria1 until it is either stopped, sold or developed to FID)  
  • Renewables hopper (GW) (project opportunities from the point of initial evaluation until they are either stopped or become part of the renewable pipeline).

Driven largely by solar and offshore wind we target 20GW (bp net) of renewable capacity developed to FID by 2025 with an aim of 50GW by 2030, with average returns of at least 8-10%.

Our quarterly disclosures track progress toward delivery of this volume target and provide transparency of returns relative to our hurdle rate.

 

Our pipeline will define the portfolio of projects actively progressed by bp or our partners. And our project hopper will define the scale of initial stage options that we are assessing. As we mature opportunities we will focus on value over volume.

Bioenergy disclosure

(annually, net to bp)

 

  • Bioenergy production (kb/d)

 

We intend to double our bioenergy production in the five years to 2025, reaching output of 50kb/d net to bp.

 

Reflecting our established bioenergy business this production metric includes equivalent ethanol production, bp bunge bioenergia power co-generation for grid export, biogas and refining co-processing2 and standalone hydrogenated vegetable oil.

Hydrogen and CCUS disclosure

We plan to build positions in green and blue hydrogen with the intention of capturing a 10% share of clean hydrogen in core markets by 2030.  

 

We have already established a platform for growth through our involvement in the Net Zero Teesside CCUS consortium and the renewable hydrogen project at the Lingen refinery in Germany. Given the early stage of this market and our business we will not be providing specific performance metrics in the near term but, as with the rest of our low carbon portfolio, we will evolve the operational and financial disclosures consistent with the maturity of the business.

Additional disclosures

Finally, to provide insight into financial progress, we disclose:

 

  • low carbon energy capital expenditure on a quarterly basis  
  • from the end of the financial year 2021, additional annual financial disclosure.

Gas

We present the results of our gas businesses as part of the gas & low carbon energy segment, enabling a greater focus on the integration of our gas value chains with our low carbon business. This includes the potential to integrate with gas downstream markets and partner with renewables to provide cleaner, firm and affordable energy to customers as well as develop opportunities for integration with hydrogen value chains.

 

Our gas businesses comprise:

  • Production
  • Gas marketing & trading
  • Integrated gas & power

Production

Our strategic approach and operating model for our hydrocarbons business is explained in the oil production & operations page.


The map below shows the regions reported in gas.  

Map of gas producing regions

We report operational and financial performance consistent with our former combined oil and gas disclosures.

 

In addition to segment financial disclosures, key disclosures include:

 

(quarterly unless otherwise stated):

 

  • Production
  • Realizations
  • Supplementary oil and gas information (annual)

 

And to provide transparency of the performance of our combined hydrocarbon operating model, we will continue to report certain measures on an aggregate basis.

 

Disclosures which relate to our combined oil and gas operations:

 

(quarterly unless otherwise stated):

 

  • Production
  • Unit production costs
  • bp-operated plant reliability
  • Supplementary oil and gas information (annual)

 

In addition, to support modelling of this business, we will provide guidance at both a segment and aggregate level (including oil), showing:

  • production (quarterly and annual)
  • rule-of-thumb (annual).

Gas marketing & trading and integrated gas & power disclosure:

(annually)

 

  • LNG portfolio  
  • Traded electricity

 

The gas marketing & trading business within our trading and shipping organisation works to ensure an integrated approach to bp’s gas and LNG portfolio, structure integrated solutions for our customers and manage associated risks.   

 

The integrated gas & power business has been established to create new markets and premium shorts by extending our presence along and across gas and power value chains by participating in gas and power infrastructure, building access to customers in high growth downstream markets and growing commercial and industrial offers.   

 

Our objectives in these areas are summarised by two key targets:

  • 25 Mtpa LNG portfolio by 2025 through a combination of equity-led and merchant positions and growing sales into new and existing markets
  • 350 TW/h hours traded electricity by 2025 through expansion into new markets and customers in support of our renewable power targets.  

We will provide an annual update on our progress toward both of these targets.  

 

 

(1) Renewables pipeline criteria: 1) Site based projects have obtained land exclusivity rights or 2) PPA based projects an offer has been made to the counterparty, or 3) Auction projects pre-qualification criteria has been met, or 4) Acquisition projects post a binding offer being accepted 
 
(2) Includes refining bio co-processing volumes that are also reflected in the refining throughput volumes in the customers & products disclosures.
25 million tonnes per annum LNG portfolio by 2025
350 terrawatt hours traded electricity by 2025