BP, Tangguh project to provide LNG to North America

Oct. 13, 2004
BP PLC and its Tangguh LNG project partners have signed a long-term sales and purchase agreement to supply LNG from Papua, Indonesia, to Sempra Energy LNG for markets in Mexico and the US—the first such long-term supply of Asia Pacific gas to North America.

By OGJ editors
HOUSTON, Oct. 13 -- BP PLC and its Tangguh LNG project partners have signed a long-term sales and purchase agreement to supply LNG from Papua, Indonesia, to Sempra Energy LNG for markets in Mexico and the US—the first such long-term supply of Asia Pacific gas to North America.

As much as 3.7 million tonnes/year of LNG will be delivered over 20 years beginning in 2008 to Sempra Energy's proposed LNG receiving terminal near Ensenada in Baja California, Mexico. The terminal's design capacity is 7.5 million tonnes/year of LNG processed to 1 bcfd of natural gas.

The flexible agreement also allows the BP partners to continue offering Tangguh gas to Japan and the Asia-Pacific area.