NLNG signs 10-year LNG supply deal with Eni

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The Nigeria Liquefied Natural Gas (NLNG) has said that it has signed a deal with Italian energy major, Eni for the supply of 1.5 million tonnes of LNG per year.

In a statement signed by General Manager, External Relations, NLNG, Eyono Fatayi-Williams, in Abuja, on Monday stated that the volumes will be supplied on both a Free on Board (FOB) and Delivered Ex-ship (DES) basis for 10 years from Trains 1, 2 and 3 of a six-train NLNG production facility on Bonny Island.

NLNG last year began remarketing LNG volumes from the first three trains as initial sales contracts with key buyers including Turkey’s Botas and Portugal’s Energia expire this year and next.

NLNG, a joint venture between state-owned NNPC (49per cent), Shell (25.6per cent), Total (15 per cent) and Eni (10.4 per cent) — currently has a production capacity of some 22.5 million mt/year, but plans to increase it to 30 million mt/year with the addition of a seventh train.

NLNG noted the agreement signifies customers’ confidence in NLNG as a trusted, safe and reliable LNG supplier in the world.

It further added that it was primed for taking up a position in the ranks of top LNG companies with plans to grow its market share.

”The SPA with Eni advances the ongoing plans by NLNG to remarket volumes from the three trains,” it added.

Eni already signed up for 1.1 million mt/year last December, while global trader Vitol also agreed late last year a 10-year deal for 0.5 million mt/year. Eni said the two deals with NLNG would allow it, from 2021, to “increase its global LNG portfolio and to support further the development of its presence in the main destination markets worldwide.”

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