Nigeria Liquefied Natural Gas (NLNG) has signed an agreement with Galp Trading SA to supply one million tonnes of LNG per year. This is coming shortly after Nigeria signed a deal with Eni and Total Gas & Power for a 10-year supply.
The Liquefied Natural Gas deal with Galp Trading SA will ensure the company receives a 10-year supply on a delivered ex-ship basis from Trains 1, 2 and 3 of a six-train NLNG production facility on Bonny Island. The move is part of the remarketing of some volumes from NLNG’s existing trains, as some contracts approach expiration.
What you need to know: The NLNG is co-owned by the Nigerian National Petroleum Corporation (NNPC), representing the Federal government which holds a 49% stake, while the other stakeholders, Shell has 25.6%, Total holds 15% and Eni accounts for 10.4%.
According to a report, NLNG is capable of producing 22mtpa of the LNG as six trains are currently operational. Meanwhile, after a 10-year delay, shareholders of the company took the final investment decision on the company’s Train 7 project in December.
NLNG has been busy: NLNG has been busy signing deals and renewing contracts since late last year. Nairametrics had reported that two separate sale and purchase agreements were sealed by NLNG with Eni and Total Gas & Power for some of the remarketed volumes of Liquefied Natural Gas from NLNG’s Trains 1, 2 and 3.
Both agreements will also be effective for 10 years. The detail of the deals signed with Eni and Total Gas & Power showed that 1.5 million tonnes will be supplied per annum for the duration of both contracts.
Why the deals matters: The agreement ensures NLNG continues to deliver the LNG globally. This, according to the company, will consolidate the position of Nigeria LNG among the top-ranking LNG suppliers in the world.