NLNG and Total Gas & Power Firm up Agreement for Train 6 LNG Volumes
Nigeria LNG Limited (NLNG) has signed a long term Sale and Purchase Agreement (SPA) with Total Gas and Power Limited for the sale of LNG volumes from its 6th train.
Under the terms of the agreement, which is subject to Final Investment Decision (FID) for NLNGSix by Shareholders, Nigeria LNG will deliver 1.2 BCM/year to Total in Europe and the United States when the 6th train commences production.
This agreement, the first between Nigeria LNG and Total, has been finalised, based on the Memorandum of Understanding (MOU) signed on 11th 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 train 6 project will raise NLNG's total capacity by 4 million tonnes (5 bcm) per annum of LNG and by up to half a million tonnes per annum of liquefied petroleum gas (LPG).
NLNG commenced operation in October 1999 with a two train 5.9 million tonnes per annum Base Project. A third train of similar design and capacity came on stream last November , while its new LPG facility was started-up in April this year. NLNG's fourth and fifth trains, also known as NLNGPlus, are currently under construction and are scheduled for completion in 2005.
On completion of the Train 6 project, NLNG's overall production capacity will increase to 21 million tonnes per annum of LNG and 4 million tonnes per annum of Natural Gas Liquids (NGLs).
Nigeria LNG's Managing Director, Andrew Jamieson, said the agreement with Total is the second in a series of SPAs to be executed for the NLNG 6 volumes. He said the agreement is particularly welcome as it adds a new
customer to an existing high quality customer base and also represents a reinforcement of Nigeria LNG's sales to the U.S.
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
September 18, 2003
Lagos, Nigeria.
