Sources at BP plc (LSE; NYSE: BP) have told "Reuters" that the company has won the tender to supply liquefied natural gas (LNG) to the Israel Electric Corporation (IEC) (TASE: ELEC.B22). The IEC is yet to confirm this saying only that "commercial talks are still underway."
The "Reuters" report followed a previous report in the trade magazine "LNG Unlimited" that BP had beaten Russia's Gazprom (RTS: OGZD; LSE; GAZP; DAX: GAZ), and Italy's ENI SpA (BIT: ENI; NYSE: E) in their bid for the IEC tender for LNG. The price of the LNG was not specified.
Under terms of the tender, BP will begin LNG deliveries on December 1 for six months, making two deliveries a month, amounting to a total of 0.15 billion billion cubic meters of natural gas. BP has an option to make six more deliveries.
Each delivery will total 130,000 cubic meters of gas, which BP will load in Cyprus onto a floating storage and regasification vessel (FSRU) owned by Excelerate Energy Inc. of the US, which will berth at the floating LNG buoy in Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on July 25, 2012
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