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Gold/Mining/Energy : LNG -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (82)	2/13/2004 12:44:22 PM
From: Dennis Roth	Read Replies (1) \| Respond to of 919

Natural gas on track to pass oil worldwide chron.com

To: Dennis Roth who wrote (82)	7/1/2004 7:35:39 AM
From: Dennis Roth	Read Replies (2) \| Respond to of 919

BP signs $1.9bln Indonesia LNG deal with POSCO reuters.com Thu Jul 1, 2004 03:21 AM ET JAKARTA, July 1 (Reuters) - BP Plc (BP.L: Quote, Profile, Research) signed a $1.9 billion deal on Thursday to supply 550,000 tonnes a year of Indonesian liquefied natural gas (LNG) to South Korean steel firm POSCO Co. (005490.KS: Quote, Profile, Research) for 20 years, starting in 2005. The deal marks the importance as a gas producer of Indonesia, Asia's sole member of OPEC, the world's main oil producing countries' organisation, although it has now became a net importer of oil. Amir Hamzah, spokesman for the Indonesian oil and gas watchdog Badan Pelaksana Minyak and gas (BP Migas), said the agreement was signed on the Indonesian resort island of Bali. BP said it would supply Posco, the world's second-largest steel maker, from Indonesia's massive Tangguh field in Papua province, 3,000 km (1,880 miles) east of Jakarta, which holds 14.4 trillion cubic feet of proved and certified natural gas reserves. But initial supplies, starting next year, would come from other sources as the Tangguh project was not due to begin commercial production until 2007. "We will seek supply from other sources. It could be from Bontang or other LNG producers ... from 2005 until Tangguh begins production," one BP Migas official told Reuters. BP Indonesia has a 37.16 percent stake in the Tangguh project. China's CNOOC Ltd. (0883.HK: Quote, Profile, Research) (CEO.N: Quote, Profile, Research) has 16.96 percent, with the rest held by several Japanese companies. The project plans to build two LNG plants with total annual capacity of seven million tonnes. Previously, the project had secured a 25-year contract to supply 2.6 million tonnes of LNG per year to China. BP has also signed a preliminary agreement with South Korea's biggest oil refiner SK Corp. (003600.KS: Quote, Profile, Research) to supply LNG for 20 years from 2006. "A second sales and purchase agreement for up to 800,000 tonnes (of LNG) with KPower of South Korea (a joint venture of SK and BP) is also currently being finalised following the outcome of this bid process," BP said in a statement. BP is also finalising an agreement with U.S. Sempra Energy (SRE.N: Quote, Profile, Research) to supply 3.7 million tonnes of LNG a year to an import terminal in Costa Azul, Mexico.