Amongst some of these buyers, according to BP Migas deputy for finance and marketing, Eddy Purwanto, are SK Corp and steel-maker Posco.

"The negotiation is expected to result in a final contract in April to sell 1.13 million tonnes of LNG per annum to the two companies," said Purwanto. His statement comes on the back of a preliminary contract that BP Migas signed with the two companies last year to supply LNG from Tangguh.

Under the terms of the US$1.5 billion agreement with SK Corp, the South Korean company will receive 580,000 tonnes of LNG per year for 20 years starting 2005. The agreement with Posco - worth US$1.43 million - will see the steel-maker receive 550,000 tonnes of LNG per annum for 20 years.

Purwanto also confirmed that BP Migas is holding talks with Marathon Oil Corp to supply around six million metric tons of LNG per year for 20 years to the US.

"We're continuing talks with Marathon. We hope to sign a preliminary contract as soon as possible... at least by February," said Purwanto.