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BP to sell LNG to Thai company in 20-year deal that includes Freeport project

BP plc and Thailand's PTT Public Ltd. Co. signed a sales and purchase agreement under which BP will supply about 1 million tonnes per annum of LNG, some from the upcoming Freeport terminal in Texas.

Under the agreement, announced in a Dec. 29 statement, BP would provide the state-owned petroleum, power and petrochemical company with LNG for a 20-year term beginning in 2017. The LNG would be sourced from BP's LNG portfolio, including the Freeport LNG project in the U.S. The companies did not disclose commercial terms of the agreement.

"BP is pleased to conclude this LNG sale and purchase agreement with PTT, with whom we have a longstanding relationship," Paul Reed, CEO of BP Integrated Supply and Trading, said in the statement. "Thailand has become a significant LNG market and this agreement with PTT further demonstrates our LNG supply capability in the region."

BP has a natural gas liquefaction tolling agreement for more than 4.4 Mtpa of LNG capacity at the Freeport LNG Development LP export project on Quintana Island, Texas. The project is under construction. LNG production is expected to start in 2018.