A sale and purchase agreement have been sealed by Nigeria Liquified Natural Gas Limited (NLNG) and Total Gas and Power, (TGP) for some of the remarketed volumes of Liquefied Natural Gas from NLNG’s Trains 1, 2 and 3. The agreement will be effective for 10 years.
Why it matters: The duo signed the agreement in order to continue 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. The detail of the deal showed that 1.5 million tonnes will be supplied per annum for the duration of the contract.
General Manager, External Relations, Eyono Fatayi-Williams, disclosed that the product would be supplied on a delivered ex-ship and free on board basis. The deal was signed by Managing Director and Chief Executive Officer, NLNG, Tony Attah, while the Senior Vice President at the LNG, Thomas Maurisse, signed for the TGP.
Speaking on the deal, Nigeria LNG in a statement said, “The SPA with the TGP advances the plans by the NLNG to remarket volumes from three trains. The SPA is expected to boost the company’s global presence and market reach, in line with its corporate vision of being a ‘global LNG company, helping to build a better Nigeria.”
What you need to know: The NLNG is a company 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%.
Also, an agreement on SPA had been signed by NLNG and Vitol SA last month. The deal was also for some of the remarketed volumes from its Trains 1, 2 and 3, which approved the supply of 0.5mtpa of the LNG for a 10-year-term on a delivered ex-ship basis. The delivery will start in October 2021.
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 NLNG took the final investment decision on the company’s Train 7 project in December.