TaiPower to name Tatan LNG supply winner early July

State-owned Taiwan Power (TaiPower) is scheduled to open concealed price offers from four bidders for its Tatan liquefied natural gas supply tender July 4, and pick the winner "two to three days later," a senior company official was quoted by Dow Jones as saying Tuesday

The tender award has been delayed from the original scheduled date in April- May to July because of the SARS outbreak. Health worries had previously prevented foreign companies from sending officials over to Taiwan to answer queries from Taipower on their LNG supply proposals.

Taipower received four bids for 25-year LNG supply tender, which includes the building of an LNG receiving terminal before 2008.

"We've completed our analysis of the technical qualifications of our four bidders, and all bidders have passed the qualifications," the official said.

The technical qualifications will ensure that the bidders have the expertise and resources to build an LNG receiving terminal as well as supply LNG to Taiwpower's upcoming 4,272-megawatt Tatan power plant in Taoyuan county.

"We have to wait for the top management's approval before awarding the contract. This may take two to three days," the official said.

The four bidders are TaLNG Co., state-owned Chinese Petroleum Corp., Tung Ting Gas Corp. and United Resources Inc.

TaLNG is a 50-50 joint venture between Asia Cement Corp. and Shell Gas B.V., a unit of Royal Dutch/Shell Group. TaLNG will source LNG from Sakhalin.

United Resources is led by a Taiwanese construction company and would source LNG supply from BP-operated Tangguh in Papua..

Tung Ting is made up of a consortium of companies that includes China Development Industrial Bank, Itochu Corp., Osaka Gas Co., Evergreen Group, Mitsubishi Corp. and Uni-President Group.

In preparation for the supply contract, Tung Ting is already constructing its new LNG receiving terminal near the Tatan power plant, and the completion date is slated for before 2008.

If Tung Ting doesn't win the tender, it may rent out the LNG receiving terminal to the eventual winner or continue to import LNG to supply gas to utility companies in the northern Taiwan.(*)