14/09/2004 - 22:00

Three-way split likely on Korea gas deal

14/09/2004 - 22:00

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Three-way split likely on Korea gas deal

TEN out of 12 invitees have expressed an intention to bid for a $20 billion contract to supply liquefied natural gas to South Korea’s State-run Korea Gas Corp.

At least two of those expressing interest are thought to be Australian.

Both the Gorgon joint venture and the North West Shelf venture are understood to have been invited to bid for the contract, which is likely to be split three ways.

While the Chevron-led Gorgon joint venture says it has responded to the invitation, the Woodside-led North West Shelf venture would not comment on the contract.

However a source said: “It’s no secret that the NW Shelf will make a bid”.

A spokesman for the Chevron-led Gorgon joint venture says it is currently reviewing the tender documents considering the Gorgon project’s ability to meet the contract requirements.

He did not say whether a bid would be lodged by the September 20 deadline.

However, he later added that the contract provided a great opportunity for Australia to get into the expanding Korean gas market.

Despite currently being supplied by the Middle East and the Pacific, as well as the North West joint venture, the new Kogas supply contract is seen as a significant step up in the Korean LNG market.

A Woodside spokesman refused to comment on the contract, while BHPB Petroleum, which is conducting a pre-feasibility study into the development of the Scarborough gas resource, did not return WA Business News’ calls.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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