NLNG and Endesa Firm up Agreement for Train 6 LNG Volumes

Nigeria LNG Limited (NLNG) has signed a long term Sale and Purchase Agreement (SPA) with Endesa of Spain.  

Under the terms of the Agreement, which is subject to a Final Investment Decision (FID) for NLNGSix by NLNGs Shareholders, Nigeria LNG will deliver 1 BCM/year to Endesa in Huelva and Cartagena, both in Spain.

This Agreement, the first with Endesa, has been finalised based on the Memorandum of Understanding (MOU) between the parties, which was signed on 20th March this year. The Agreement underscores NLNG’s strategy of diversification of its customer portfolio by adding a new customer to its existing buyers.

The NLNGSix Project, when completed, will raise NLNG’s total capacity by 4 million tonnes (5 BCM) per annum of LNG and up to 0.5 million tonnes per annum of liquefied petroleum gas (LPG).

Endesa is a prominent player in the electricity industry in Spain, Latin American Countries and the Mediterranean region, with significant presence in other European countries.

NLNG commenced commercial operation in October 1999 with its two train 5.9 million tonnes per annum Base Project.  A third train of similar design and capacity as the Base Project trains came on stream during the last quarter of 2002, while its new LPG facility was started-up in April 2003. NLNG’s fourth and fifth trains, also known as NLNGPlus, are currently under construction and are scheduled for completion late 2005.

On completion of the NLNGSix Project, the NLNG plant will have an overall production capacity of 22 million tonnes per annum of LNG and 2.7 million tonnes per annum of LPG.

Nigeria LNG’s Deputy Managing Director, Alhaji Ibrahim Dahiru Waziri, said the Agreement with Endesa is the first in the series of SPAs being executed for the NLNGSix LNG volumes.

Waziri is delighted with the progress of NLNGs existing operations and the efforts to establish NLNGs reputation as one of the most reliable suppliers of LNG in the Atlantic Basin. He said the SPA signals the company’s readiness to meet its obligations to all buyers, assuring that it will maintain its world class performance in all areas especially in health, safety and environmental matters. The company recently celebrated 22 million construction man-hours without a lost time injury.

NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell Gas BV (25.6%), TotalFinaElf LNG Nigeria Limited (15%) and ENI International (N.A.) NV (10.4%).

Press Statement
August 5, 2003
Lagos, Nigeria.