Korea postpones announcement of winner for LNG supply

South Korean major companies Posco and SK Corp have decided to postpone the announcement of the winning bidder to supply their LNG needs, the Bisnis Indonesia daily reported on Wednesday.

The paper said that the South Korean companies needed more time to evaluate the final bids submitted by Indonesian and Malaysian liquefied natural gas suppliers.

The daily said that the winner of the LNG purchase contract would be announced on July 25 instead of tomorrow (Thursday) as initially scheduled.

BP Indonesia through its Tangguh LNG project in Papua and Malaysia?s Petronas through its Bintulu LNG Project are the most strongest candidates to win the 20-year contract to supply the two Korean companies with LNG of up to one million tons a year.

Sources said that Indonesia?s Minister of Energy and Mineral Resources Purnomo Yusgiantoro was currently visiting South Korea to negotiate the LNG contract which is estimated to have a total value of about US$4.4 billion.

Posco?s spokesman Oh Dong Ho said that BP Indonesia and Petronas had been shortlisted from at least five LNG producers taking part in the tender. Both companies are optimistic that they will be able to win the contract. (*)