South Korea?s POSCO and SK open 1.1 MTPA LNG tender

South Korean steel maker and POSCO and top oil refiner SK Corp. had invited participants from Australia, Malaysia, Indonesia, Oman, Qatar and Russia to bid for liquefied natural gas (LNG) contract at the rate of 1.1 million tons annually over 20 years starting 2005, Reuters reported Wednesday.

Australian LNG producer North West Shelf venture said the company was one of 10 companies invited to submit an offer for the tender.

The LNG contracts will make POSCO and SK Corp the first private companies to import LNG into South Korea, the world's second-largest importer after Japan.

KOGAS is the country's sole LNG importer and wholesaler, importing 16.9 million tonnes of LNG annually under long-term supply contracts with Indonesia, Malaysia, Oman, Brunei and Qatar.

The company has been seeking an extra two million tonnes of term LNG to meet growing demand in South Korea, which partly stems from power firms using more LNG than alternative fuel oil.

South Korean LNG demand is expected to reach about 20 million tonnes in 2005, according to offical data.(*)