NLNG AND SHELL WESTERN LNG SIGN LONG TERM CONTRACT FOR TRAIN 6 VOLUMES
Liquefied Natural Gas from Nigeria will be increasingly available to end users in the key markets of Europe, North America and Mexico on completion of NLNG’s sixth train (NLNGSix) as Nigeria LNG Limited signs a multiple destination contract with Shell Western LNG, a subsidiary of the Royal Dutch/Shell Group.
Under the terms of the Sale and Purchase Agreement (SPA), which is subject to a positive Final Investment Decision (FID), for NLNGSix by NLNGs Shareholders, Nigeria LNG will deliver 1.4 million tonnes per annum (mtpa) of LNG to Shell Western LNG in the Iberian Peninsula, North America and Mexico. Barbados based Shell Western LNG is a major player in the Atlantic Basin LNG business. The contract is for a plateau period of 20 years.
This is NLNG’s second long term Sale and Purchase contract with Shell Western LNG, which earlier signed a SPA for 1.1 mtpa from NLNGPlus (Trains 4 and 5).
The NLNGSix Project, when completed, will raise the Company’s LNG capacity by 4 mtpa to nearly 22 mtpa. The NLNG plant will also have an overall production capacity of nearly 4 mtpa of natural gas liquids (LPG and condensate).
NLNG commenced commercial operation in October 1999 with its two train 6 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 in 2005.
The Managing Director of Nigeria LNG, Mr. Andrew Jamieson is delighted with this second SPA with the Shell Group. He said “this demonstrates the healthy appetite for NLNG’s volumes in the Atlantic Basin and the further extension of our sales position in North America.
NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell Gas BV (25.6%), Total LNG Nigeria Limited (15%) and ENI International (N.A.) N.V. S.a’r.l. (10. 4%).
Press Statement
November 26, 2003
Lagos, Nigeria
