Sales and Purchase Agreement between ENEL and NLNG

Nigeria LNG Limited (NLNG) is pleased to announce that its LNG
Sales and Purchase Agreement (SPA) with ENEL – the Italian power generating company – has now received unconditional commitment from ENEL, with certain contractual details to be finalised before the end of July.

NLNG and ENEL entered into an SPA on 11^th May, 1992 for the supply of 3.5 bcm of regasified LNG to ENEL’s receiving terminal to be constructed near Montalto di Castro on the west coast of Italy.

ENEL has informed NLNG that the Italian Government has now issued a decree approving the construction of the Montalto di Castro LNG terminal.

NLNG and ENEL have agreed a conditional option for ENEL to select another LNG Terminal at Monfalcone near Trieste as their receiving terminal in preference to Montalto di Castro if all permits for Monfalcone are received.

NLNG appreciates the strong support of the Italian Government, ENEL and the ENI Group for the Nigeria LNG Project. ENEL represents about 50% of the market for LNG from Nigeria and this support is therefore important for the Project.

With ENEL’s commitment in place, NLNG will continue to pursue vigorously its efforts to bring the Project to fruition together with its shareholders NNPC, Shell, Elf and Agip and with the firm support of the Nigerian Government.