BP Offers Gazprom Trinidad LNG for Global Venture: Report

Oil major BP has offered to contribute part of its liquefied natural gas business in Trinidad and Tobago to its global venture with Russia's gas monopoly Gazprom, a newspaper reported on Thursday.

Vedomosti business daily quoted sources close to BP's Russian vehicle TNK-BP as saying BP has also made a few more contribution proposals, which sources declined to disclose.

Gazprom and BP were not immediately available for comment.

Gazprom, BP and TNK-BP agreed to set up a global venture earlier this year following Gazprom's acquisition of the giant East Siberian Kovykta field from TNK-BP.

TNK-BP wanted to use Kovykta for an ambitious project of gas supplies to China, but Gazprom lobbied the government to block the plan as it had a rival project.

TNK-BP, in which BP has 50%, was finally forced to sell Kovykta to Gazprom, but the three firms agreed they would set up a bigger gas venture.

Gazprom's contribution would be represented by Kovykta, TNK-BP would contribute its other Russian gas assets, including Rospan, while BP's contribution has yet to be defined.

Vedomosti quoted industry sources as saying Gazprom could be interested in becoming BP's partner in Trinidad's LNG as the Caribbean country was one of the biggest suppliers of the United States.

Gazprom, the world's largest gas producer, already supplies a quarter of Europe's gas needs, but wants to expand into the fast growing United States LNG market.