JUser: :_load: Unable to load user with ID: 62

Japan’s Tohoku signs Tangguh LNG contract

Wednesday, 29 November 2006

The Tangguh project, which is more than 50 percent complete, will produce 7.6 million tonnes per annum from two liquefaction Trains when it comes on stream in 2008.

Tohoku said it had reserved 120,000 tonnes per annum from the BP-led project. It currently purchases 2.77 MTPA of LNG from Malaysia, Qatar, Indonesia, and Australia.

The Japanese company also has a 20-year contract for 420,000 tonnes of LNG a year from the Royal Dutch Shell-led Sakhalin II project in the Russian Far East.

The Tangguh project, which is centered on the Bintuni Bay area of Papua, Indonesia, will eventually be capable of supporting up to eight Trains.

BP holds a 37.16 percent interest in the project under a production sharing contract with Indonesia’s Migas regulatory body for oil and gas upstream activities. The project involves the tapping of Tangguh fields Vorwata, Wiriagar deep, Roabiba, Ofaweri, Wos and Ubadari to extract combined proven reserves of around 14.4 trillion cubic feet of gas.

The Tangguh project has previously secured contracts to ship LNG to China's Fujian province and to South Korea's POSCO and K-Power. It has also signed a deal to ship LNG to Sempra Energy’s Costa Azul reception terminal being built on the west coast of Mexico.

Other shareholders in Tangguh are China National Offshore Oil Corp. with a 16.96 percent stake, MI Berua BV with 16.3 percent, Nippon Oil Exploration Ltd with 12.23 percent, KG Berau/KG Wirigiar with 10 percent and LNG Japan Corp. with 7.35 percent.

Tohoku Electric Power Co.