BP Migas says SK-POSCO delay LNG supply tender winner decision

South Korea's refiner SK Corp and steel maker POSCO have decided to delay the announcement of LNG supply tender winner, according to an official of Indonesian upstream oil and gas authority BP Migas, but added that Indonesia is likely to win the deal.

SK- POSCO is originally scheduled to announce the winner for a 1.1 million-ton per annum of LNG supply this month. Tangguh LNG, which is operated by Anglo-American giant BP Plc, and Malaysia Tiga LNG, operated by Malaysia?s Petronas had been short-listed as final bidders.

?A high ranking delegation from SK and POSCO will come to Jakarta on June 20 to negotiate terms and conditions,? said BP Migas LNG marketing division head Joko Harsono. He expressed optimism that Tangguh would be able to secrure SK-POSCO deal since the price offered is lower than that of Malaysia Tiga.

?We are offering at Fujian price plus 20 US cents per MMBTU,? he said, referring to LNG selling price from Tangguh to China's Fujian province last year. He did not tell Malaysia Tiga?s offering price.

He expected SK-Posco would make a decision in July.(godang)