K Power, BP to sign Tangguh LNG deal Tuesday
Monday, August 30 2004 - 05:32 AM WIB
South Korean utility firm K Power will sign a final deal on Tuesday Tuesday with BP PLC to buy LNG from BP's Tangguh LNG project in Papua, Indonesia, a BP Migas official said.
Under the deal, said BP Migas deputy chairman Eddie Poerwanto, K Power will buy 600,000 tons of LNG a year for 20 years.
K Power will use the LNG to operate its power plants.
BP will start supplying the gas in 2005. But for the first two years, it will obtain the gas from state-owned Pertamina's Bontang LNG plants in East Kalimantan, or from the spot market, as the Tangguh project isn't expected to begin operations until 2007, BP Migas said.
Similar deal with another South Korean firm Posco was signed July, involving the supply of 0.55 million tones of LNG per annum for a period of 20 years.(godang)