Indonesia Wins 1.1 Million T/Yr S.Korea LNG Deal
JAKARTA (Reuters) - Indonesia has won a tender to supply 1.1 million tonnes of liquefied natural gas (LNG) per year to South Korean steel giant POSCO Co (05490.KS) and oil refiner SK Corp (03600.KS) over 20 years, an official said on Saturday. Indonesia, one of the world's biggest LNG suppliers, has announced a string of major deals in the past week. It had said it was optimistic of winning the contract which is expected to use LNG from the massive Tangguh field in remote Papua province. "Indonesia has won the tender to supply 1.1 million tonnes of LNG to SK Corp and POSCO for 20 years," an official from Indonesia's oil watchdog, Badan Pelaksana Migas (BP Migas), told Reuters. The official, who declined to be named, said details would be finalised next month, when the deal will be formally announced. POSCO spokesman, Oh Dong-ho, said he could not confirm the winner of the tender until it was officially signed. "The decision seems to be over. But we agreed with the supplier to announce the deal when we sign it in August," Oh said. Indonesia had said the contract was due to start in 2005 and if it won the tender, would use LNG from Bontang in East Kalimantan to bridge the supply gap until Tangguh comes on stream in 2007. Construction of the vast Tangguh complex is due to start early next year and operator, Britain's BP Plc (BP.L), has said the fields there contain 14.4 tcf of proved and certified natural gas reserves. Clinching the Korea deal is more good news for Indonesia which on Thursday signed a memorandum of understanding with Mexico to supply three to six million tonnes of LNG annually from 2007. The gas would be destined for the U.S. market under a deal which would be a first for Indonesian LNG to the lucrative American market. Indonesia also signed natural-gas supply deals worth $3 billion only a week ago. One of those involves U.S. oil giant ConocoPhillips (COP.N)which would serve Singapore's Island Power for 15 years beginning in 2006. Indonesia, Asia's only OPEC member, exports more than 23 million tonnes of LNG a year to Japan, Korea and Taiwan. (c) 2003 Reuters Limited. --------------------------------------------------------------------- To unsubscribe, e-mail: [EMAIL PROTECTED] Visit IAGI Website: http://iagi.or.id IAGI-net Archive 1: http://www.mail-archive.com/iagi-net%40iagi.or.id/ IAGI-net Archive 2: http://groups.yahoo.com/group/iagi Komisi Sedimentologi (FOSI) : F. Hasan Sidi([EMAIL PROTECTED])-http://fosi.iagi.or.id Komisi SDM/Pendidikan : Edy Sunardi([EMAIL PROTECTED]) Komisi Karst : Hanang Samodra([EMAIL PROTECTED]) Komisi Sertifikasi : M. Suryowibowo([EMAIL PROTECTED]) Komisi OTODA : Ridwan Djamaluddin([EMAIL PROTECTED] atau [EMAIL PROTECTED]), Arif Zardi Dahlius([EMAIL PROTECTED]) Komisi Database Geologi : Aria A. Mulhadiono([EMAIL PROTECTED]) ---------------------------------------------------------------------
