Nigeria LNG renews LNG supply agreement with Galp Energia (Portugal)
Nigeria Liquefied Natural Gas (NLNG) has concluded a 10-year LNG supply agreement with the Portuguese energy company Galp Energia for 1 Mt/year of LNG. The gas will be produced from the trains 1, 2 and 3 of the Nigeria LNG project. Galp Energia sources most of its LNG from NLNG: the group signed a 20-year contract with NLNG in 2000 for around 420 mcm/year, a 20-year contract in 2003 for 1 bcm/year and a 20-year contract in 2006 for 2 bcm/year.
NLNG recently signed long-term agreements for its LNG. In January 2020, it signed a 10-year purchase agreement with Eni (Italy) for 1.5 Mt/year of LNG produced from the trains 1, 2 and 3 of the Nigeria LNG project and signed a similar contract with Total, for 1.5 Mt/year starting in 2021. In December 2019, Vitol concluded a 10-year purchase agreement with NLNG for 0.5 Mt/year also from 2021.
Nigeria LNG is a joint-venture (JV) owned by the Nigerian National Petroleum Corporation (49%), Shell (25.6%), Total (15%) and Eni (10.4%). In September 2019, NLNG signed a Letter of Intent (LoI) for the EPC of the Train 7 with a consortium composed of Saipem, Chiyoda, and Daewoo. In December 2019, NLNG signed a 20-year supply agreement for its proposed Train 7 project, paving the way for an FID. In January 2020, NLNG made the final investment decision (FID) on the project. Train 7 will have a capacity of 8 Mt/year (nearly 11 bcm/year) and will raise the liquefaction capacity of the existing Nigeria LNG plant by more than 35%, from 22 Mt/year (30 bcm/year) to 30 Mt/year (over 40 bcm/year). The construction of the new train will take up to five years with commissioning expected to begin in 2024.
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