Media reports are emerging that UK oil titan BP has offered part of its interest in a liquid natural gas project in Trinidad and Tobago to Russian gas monopoly Gazprom, as part of a strategic alliance that was forged by the companies earlier in the year.
As part of the strategic alliance, BP’s 50%-owned Russian joint venture, TNK-BP, agreed to sell its interest in the vast Kovykta gas field to Gazprom. The companies subsequently agreed to look at strategic opportunities for joint investment both overseas and in Russia. BP’s chief executive had said that these opportunities would involve projects of at least $3 billion.
Now, according to The Times, citing Russian publication Vedomosti, Gazprom is considering BP’s offer of the stake in the strategic Trinidad and Tobago liquid natural gas (LNG) operation, which could see the Russian monopoly become an important supplier of the fuel to the US.
According to the UK daily, the LNG project, which BP established alongside BG Group and Repsol, among others, is the largest supplier of the fuel to the US, and transports 75% of its production to the market, which equates to one billion cubic feet each day. The Times said that BP holds at least a 34% interest in each of the four LNG trains run by the facility.
As cited by The Times, a BP spokeswoman refused to comment on precise details, but said: We have are having ongoing discussions with Gazprom as we announced we would and these discussions could cover any part of our portfolio.
Thompson Financial reported that Gazprom has also refused to comment on the media speculation. However, it cited Vedomosti as saying that the deal would be very attractive to Gazprom, as it would allow it to enter the strategic US market.