BP, Oman LNG sign MoU for six-year delivery deal

Published June 5th, 2003 - 02:00 GMT

Oman LNG and BP Gas Marketing have reached agreement to supply up to four million tons of Liquefied Natural Gas (LNG) over a six-year period beginning in 2004 to BP to deepen BP’s gas marketing activities in Spain. 

 

The flexible agreement will involve BP receiving up to 12 cargoes of LNG by ship in Europe to underpin existing supplies. Cooperation between the two parties will ensure additional opportunities to add value through diverting to other markets. Oman LNG will provide shipping for the duration of the agreement. 

 

“We are delighted to enter into this agreement with Oman LNG. It will enable us to continue to develop our downstream market positions in countries such as Spain where we are the leading new market entrant—and to offer our global customer base a portfolio of flexible supply sources to meet their needs,” said Ralph Alexander, BP’s chief executive, Gas, Power and Renewables. 

 

Signing the agreement on behalf of Oman LNG Chairman Nasser Al-Jashmi said: “We are extremely pleased about this deal with BP and hope that this is the start of a long lasting relationship between our two companies” 

 

Oman LNG has existing long-term contracts with Kogas of Korea and Osaka Gas Japan. Current capacity of the two train plant is 6.8 metric tons per annum (Mt/a). A third train (Qalhat LNG) sponsored by the Government of Oman is under construction at Qalhat.  

 

Oman LNG shareholders are the government of the Sultanate of Oman, Shell, Total, KOLNG, Partex, Mitsubishi, Mitsui and Itochu. With a portfolio of supplies, BP is one of the world’s largest producers and marketers of gas and is the second largest marketer of natural gas in Spain. — (menareport.com) 

© 2003 Mena Report (www.menareport.com)


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