Corrs Chambers Westgarth advised POSCO on the approximately US$2 ($2.7) billion LNG sales and purchase agreement recently signed in Bali with the BP-led Tangguh LNG consortium.
Corrs said the agreement will see POSCO, one of the world’s largest steel producers, become the first private company to import liquefied natural gas (LNG) into Korea.
Under the deal, 550,000 tons of LNG per annum will be supplied to South Korea for the next 20 years.
Perth Corrs Partner, John King, said the agreement was a historic milestone for the Korean LNG market.
“The Korean LNG market has traditionally been dominated by the state-run Korea Gas Corporation. This is the first time a private company has obtained a contract for direct LNG importation,” King said.
“This is an important step which will assist in underpinning the US$2.2 billion construction cost of the Tangguh LNG project to be located in Papua, Indonesia.”
POSCO will receive the LNG via its US$300 million LNG receiving terminal at Gwangyang Bay, Korea which is currently under construction.
Chief Executive Officer and partner, John Denton, said the project demonstrated Corrs’ ability to provide high-quality legal advice on an international scale.
“Our team has demonstrated its continuing strength in energy issues by advising on such an important project. It also shows the increasing role of Perth-based lawyers in major international energy transactions,” Denton said.
The contract was signed by POSCO’s Senior Vice President Young Tae Kwon and BP Group’s Vice President for Gas, Power and Renewables Anne C Quinn at a special signing ceremony in Bali earlier this month.