NLNG SIGNS NLNGPlus VOLUMES TO BG LNG SERVICES
Nigeria LNG Limited’s cargoes will be amongst the first callers at the expanded Lake Charles LNG receiving terminal in the United States with the signing of a long term Sale and Purchase Agreement (SPA) with BG LNG Services (BGLS) for sale of LNG volumes from its 4th and 5th trains.
BGLS is a US subsidiary of the BG (British Gas) group.
Lake Charles terminal provides access to 15 major intrastate and interstate natural gas pipelines, as well as to Henry Hub, through the Trunkline Gas Pipeline system. Southern Union, owners of the terminal, have announced an expansion programme scheduled to be completed by the start of 2006.
Under the terms of the SPA, Nigeria LNG will deliver 3 BCM/year to BG in Lake Charles when the new trains commence production in 2005. The Agreement has been finalised, based on the memorandum of understanding between the parties signed in May this year.
The long-term Sale and Purchase Agreement builds on a number of spot sales to BGLS at Lake Charles.
“I welcome this new and firmer long term relationship, built on the excellent working relationship with BG LNG Services in the US over the past few years,” said Dr. Andrew Jamieson, Managing Director, Nigeria LNG Limited.
Jamieson praised BG’s flexible and professional approach to transactions, especially at the Lake Charles Terminal and expressed confidence that this will continue in the new contract.
He further said “the Agreement underscores NLNG’s strategy of diversification by adding a new term contract customer in the exciting and growing US LNG market.”
NLNG commenced commercial operation in October 1999 with its two train 6 million tonnes per annum Base Project. A third train came on stream on 28th November 2002, bringing NLNG’s current production capacity to 9 million tonnes per annum.
On completion of the NLNG Plus Project, NLNG will have 5 trains with a production capacity of 17 million tonnes per annum of LNG and 3.2 million tonnes per annum of natural gas liquids (NGLs). A sixth train is under consideration and this will add a further 4 million tonnes per annum of LNG bringing the company’s overall LNG capacity to 21 million tonnes yearly and NGLs to 4mtpa.
NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell Gas B.V. (25.6%), Total LNG Nigeria Limited (15%) and ENI International (N.A.) N.V. S.a'r.l. (10.4%).
Press Statement
October 13, 2003
Lagos, Nigeria.
