14 Oct 2004

BP signs deal to supply gas from Papua field

8:10 am on 14 October 2004

Energy giant BP is set to supply 3.7 million tonnes a year of liquefied natural gas to Mexico from a gas field in the Indonesian province of Papua.

BP signed a 20-year contract on Tuesday to supply the gas to US-based Sempra Energy from the Tannguh gas field in Papua's Berau Bay area.

Tangguh, an Indonesian national project, is part-owned and operated by BP and is expected to go onstream in 2008.

Analysts say the deal is significant as it means there are now enough sales commitments for the planned US$5 billion venture to go ahead.