K Power, Tangguh LNG sign $2 billion contract
Tuesday, August 31 2004 - 02:32 AM WIB
South Korea electricity firm K Power and Tangguh LNG project operated by Anglo-American oil gaint BP Plc on Tuesday signed a US$2 billion contract to enable the former to purchase up to 800,000 tons per annum of LNG for 20-year period starting 2006.
Upstream oil & gas authority BP MIGAS said in a statement the Korean firm will use the LNG to fuel its 1,074-megawatt power plant in Gwangyang, South Korea, which is scheduled to start its commercial operation in 2006.
?Tangguh will supply 600,000 ton per annum in the first of ten-year. The LNG supply will set to 500,000 ton per annum for the next ten years but there is an option to increase the supply by 200,000 tons for the period,? the statement said. (alex/godang)