BP & Marathon Sign LNG Supply Agreement

BP Energy Company has signed a five-year agreement to supply liquefied natural gas (LNG) to Marathon Oil Corporation, beginning midyear 2005. Delivery will be at the Elba Island, Georgia, LNG regasification terminal. Pricing of the LNG will be linked to the Henry Hub Index.

In welcoming the agreement, Head of BP's North American LNG business unit Nigel Preece said: "This agreement is a good example of how the LNG industry is becoming more flexible. We can supply Marathon from our LNG portfolio to meet their needs in the short term while continuing to develop our own access capacity to supply the US and other markets around the world over the longer term."

Marathon holds rights to deliver and sell up to 58 billion cubic feet of natural gas per year at the Elba Island facility.