Russia's Svkomflot to bid to transport LNG from RI

Russia's fully state-owned shipping company Sovkomflot plans to bid in the tender for the contract to transport liquefied natural gas (LNG) from the Tangguh natural gas fields in Indonesia's West Papua province, the Dow Jones newswire reported on Friday quoting Sergei Frank, Sovkomflot's general director,as saying.

LNG transportation from the fields is projected at 9 million tonnes per year for 20 years starting 2008, Frank said.

Companies with stakes in the Tangguh project to produce and liquefy natural gas include the U.K.'s BP with 37.16%, China's CNOOC with 16.96%, Japan's Mitsubishi with 16.3%, Japan's Nippon Oil with 12.23%. Japan National Oil Corporation, Kanematsu and Overseas Petroleum together hold 10% in the project, while Japan's Sumitomo and Sojitz together hold 7.35%.

Sovkomflot is building two ships in South Korea to carry LNG from the fields, Frank said, adding that the cost of each gas carrier is estimated at U.S. $150 million.

Sovkomflot is one of the largest shipping companies in Russia. Its net profit amounted to $204.5 million in 2004, as calculated under U.S. GAAP. (*)