Posco-SK push bidders to lower LNG price: BP Migas

State oil and gas upstream authority BP Migas said that South Korea?s biggest steel producer Posco, and oil refiner SK Corp. had been trying to seek for more price discount before deciding on whether to buy about 20 million tons of LNG from BP Plc-operated Tangguh project in Indonesia or from Malaysia.

BP Migas senior official Eddy Poerwanto told Petromindo.Com late Wednesday that negotiation with SK and Posco was tough. ?We're asked to improve terms and conditions, including lowering the price that is already low. But Indonesia won?t offer LNG price lower than Fujian contract price,? said Eddi Purwanto.

Earlier, another BP Migas official said LNG price offered to SK-Posco was set at around US$ 2.65 per MMBTU, which reflected a 20 cents premium over the Fujian LNG price contract.

Malaysia LNG Tiga and BP's Tangguh LNG project are competing to win a contract from the South Korean companies to supply 1.1 million tons of LNG per year for 20 years starting 2005.

Posco and SK Corp. were supposed to announce the winner on July 16, but then decided to delay it until July 25. (godang)