Tangguh, Petronas short-listed for S. Korea LNG supply bid

South Korea's Posco and SK Corp. have short-listed Tangguh LNG, which is operated by BP Plc, and Malaysia's Petronas as favorable bidders to supply up to 1.5 million metric tons of liquefied natural gas (LNG) annually starting 2005.

?We have received confirmation that Tangguh and Petronas are short listed,? said Satya W. Yudha, BP Indonesia?s vice president for government and external affairs in a phone interview Friday.

Petronas and Tangguh beat other bidders such as Australia?s NorthWest Shelf Venture, Qatar?s RasGas, Brunei, Oman and Russia.

Posco and SK Corp. eventually pick one as the prime bidder in July for further close negotiations, said Soojung Kim, an assistant manager at Posco's public relations department as quoted by Dow Jones. Earlier reports said winner will be picked in May.

Posco is the world's second largest steel maker, while SK Corp. is South Korea's largest oil refiner.

BP had just awarded Tangguh LNG complex EPC contract to a consortium led by Kellog, Brown & Root, and construction is scheduled to commence next year. Tangguh is located in Indonesia's easternmost province of Papua. (alex)