(Updating with details of the contracts)
SEOUL (AFX) - The commerce, industry and energy ministry said it has picked the Shell-led Sakhalin Energy Investment Co, Yemen Liquefied Natural Gas (LNG) and Malaysia LNG as preferred suppliers for 20-year LNG contracts worth a combined 20 bln usd.
The three will fulfil long-term contracts with Korea Gas Corp and four local power generators covering a combined 5 mln tons per year beginning 2008, with final contracts to be signed in March or April, subject to government approvals, the ministry said.
The pricing of the contracts ranges from 197-218 usd per ton, far lower than the average 322 usd under current supply deals.
"The new contracts are about 35-40 pct cheaper than the past and current ones, saving the nation about 1.34 bln in 20 years," it added.
It also said that the contracts include several provisions against spot price fluctuations and guarantee supply for the cold seasons.
Sakhalin Energy is the Shell-led operating company for the Sakhalin II Project in eastern Russia, the world's largest integrated oil and gas project, involving capital expenditure of nearly 10 bln usd.
Yemen LNG is owned by France's Total, which has a 43 pct stake, Yemen Gas with 23 pct, Hunt Oil with 18 pct, South Korea's SK Corp with 7 pct, and Hyundai Corp with 6 pct.
Malaysia LNG is owned by Petronas Gas Sdn Bhd with a 65 pct stake, the Malaysian state of Sarawak with 5 pct, and Shell and Mitsubishi Corp with 15 pct each.
Sakhalin Energy and Malaysia LNG will take on 1.5 mln tons of gas each and Yemen LNG supply 1.3 mln tons.
eunkyung.seo@xinhuafinance.com
seo/tr
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
SEOUL (AFX) - The commerce, industry and energy ministry said it has picked the Shell-led Sakhalin Energy Investment Co, Yemen Liquefied Natural Gas (LNG) and Malaysia LNG as preferred suppliers for 20-year LNG contracts worth a combined 20 bln usd.
The three will fulfil long-term contracts with Korea Gas Corp and four local power generators covering a combined 5 mln tons per year beginning 2008, with final contracts to be signed in March or April, subject to government approvals, the ministry said.
The pricing of the contracts ranges from 197-218 usd per ton, far lower than the average 322 usd under current supply deals.
"The new contracts are about 35-40 pct cheaper than the past and current ones, saving the nation about 1.34 bln in 20 years," it added.
It also said that the contracts include several provisions against spot price fluctuations and guarantee supply for the cold seasons.
Sakhalin Energy is the Shell-led operating company for the Sakhalin II Project in eastern Russia, the world's largest integrated oil and gas project, involving capital expenditure of nearly 10 bln usd.
Yemen LNG is owned by France's Total, which has a 43 pct stake, Yemen Gas with 23 pct, Hunt Oil with 18 pct, South Korea's SK Corp with 7 pct, and Hyundai Corp with 6 pct.
Malaysia LNG is owned by Petronas Gas Sdn Bhd with a 65 pct stake, the Malaysian state of Sarawak with 5 pct, and Shell and Mitsubishi Corp with 15 pct each.
Sakhalin Energy and Malaysia LNG will take on 1.5 mln tons of gas each and Yemen LNG supply 1.3 mln tons.
eunkyung.seo@xinhuafinance.com
seo/tr
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
