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BP and Gazprom Announce LNG Supply Deal

Source: www.gulfoilandgas.com 9/13/2006, Location: Europe

BP and Gazprom Marketing & Trading had reached an agreement for BP to supply a number of liquefied natural gas (LNG) cargoes which Gazprom Marketing & Trading will market in the Atlantic Basin. The cargoes, which will be sourced from within BP's portfolio, will be supplied over the period 2006 and early 2007 and transported in LNG ships chartered by BP to Gazprom Marketing & Trading. Gazprom Marketing & Trading will specify the delivery points in accordance with its marketing needs.

The first cargo of 135,000m3 was loaded today on the British Merchant at Point Fortin, Trinidad & Tobago for delivery to Cove Point, Maryland, US.

BP's Anne Quinn, group vice president for gas, LNG and natural gas liquids said: "We are pleased to be working with Gazprom in the area of LNG. As the world's largest gas company, Gazprom is potentially also a major supplier of LNG to the Atlantic Basin. This agreement is a clear indication of the way our two companies can work together to their mutual advantage. We look forward to identifying further opportunities to deepen our relationship in the future."

Gazprom's Deputy Chairman Alexander Medvedev said: "We are pleased with this agreement with such a strong and well regarded partner as BP, as Gazprom is continuing to look at ways to increase its LNG portfolio for a successful development of its LNG strategy and the benefit of its customers".

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