An agreement was signed today, on behalf of the Tangguh
partners, for the supply of 2.6 million tones per annum
(mtpa) of LNG to the proposed Chinese LNG terminal, Fujian,
for a 25 year period. The agreement is a major milestone
in the development of the Tangguh project, of which BG
is a partner.
The LNG Sales and Purchase agreement was signed by Baihaki
Hakim on behalf of BPMIGAS (Implementing Agency for the
Upstream Oil and Gas sector in Indonesia) and the investors
in the Tangguh LNG Project, and Wei Liucheng, President
Director of China National Offshore Oil Corp (CNOOC).
The construction of the Fujian terminal is expected to
start in 2004 and the terminal is scheduled to begin
operations in 2007. The LNG Sales and Purchase Agreement
is subject to the usual regulatory and customary conditions
precedent.
BG Group is a partner in the Tangguh project, along
with BP, Mitsubishi/Inpex, Nippon oil, Kanematsu and
LNG Japan. BG operates the Muturi Production Sharing
Contract, with a 50% interest, which, in conjunction
with two other PSCs, is intended to supply gas to the
Tangguh LNG facilities.
Fujian will be China's second LNG importation terminal
and is intended to supply two major new power plants,
Songyu II (1800 MW) in Xiamen, and Nanpu (1800 MW) in
Quanzhou, together with the five major coastal cities
of Fuzhou, Xiamen, Quanzhou, Zhangzhou and Putian.
David McManus, Executive Vice President, BG Group, said, "This
agreement to supply LNG into the important Chinese market
is a great success and a major milestone for the Tangguh
partners. Tangguh is situated close to some significant
LNG markets and, as an attractive low unit cost development,
we look forward to announcing further supply contracts
in the future".
There are matters discussed in this
media information that are forward looking statements.
Such statements are only predictions and actual events
or results may differ materially. For a discussion
of important factors which could cause actual results
to differ from the forward looking statements, refer
to the Company's annual report and accounts for the
year ended 31 December 2001.
Notes to Editors
Muturi and Tangguh
In July 1997, BG Group and ARCO (now BP) agreed to collaborate
in the supply of gas to the proposed Tangguh LNG project,
using reserves from the BG-operated Muturi PSC and the BP-operated
Berau and Wiriagar PSCs.
In August 1998, an independent third-party reserves
assessment by consultants DeGolyer and MacNaughton certified
proved and probable reserves from the three PSCs of 18.3
trillion cubic feet of which BG's share - that in the
Muturi PSC - is 1.9 trillion cubic feet (317 million
barrels of oil equivalent). The proved and probable reserves
should be sufficient to support at least three trains
each of 3.5 million tonnes per annum of LNG for 25 years.
Front End Engineering design for the Tangguh project
has now been completed and, in the first quarter of 2002,
the invitation to tender for the construction of the
plant was released to bidders. Both the project sanction
and the award of the EPC contract are scheduled for the
second quarter of 2003.
BG Group
BG Group plc, The Integrated Gas Major, works across the spectrum
of the gas chain. Active on five continents in some 20 countries,
BG operates four business segments - Exploration & Production,
LNG, Transmission & Distribution and Power.
Internationally, BG's operational strategy is to develop
gas markets and construct infrastructure in tandem with
its exploration interests. BG's core areas are the UK,
Egypt, Kazakhstan, South America, India and Trinidad & Tobago.
|