NLNG to Re-market Expiring Sales, Purchase Agreements
The Nigeria Liquefied Natural Gas Limited (NLNG) has disclosed that it is on the verge of completing its commercial strategies for re-marketing LNG volumes for its three trains whose Sales and Purchase Agreements (SPAs) would soon expire.
Although it did not give the expiration timeline for the SPAs of the three trains, it however stated that it has also initiated activities for the marketing of LNG volumes that would come from its proposed Train-7 project, which is currently awaiting a final investment decision (FID).
According to its ‘facts and figures on NLNG 2017’ which was recently released, the SPAs for the trains 1, 2, and 3, would soon expire, but the firm has started processes to re-market the volumes in the global LNG market. The document explained that currently, NLNG manages 16 long term LNG SPAs, executed with 10 buyers on a Delivered Ex-Ship (DES) basis with buyers that include Enel, Gas Natural Fenosa, Botas, Engie, GALP Gas Natural, Endesa, ENI, Iberdrla, Shell International Trading Middle East Ltd, and Total Gas and Power Ltd.
According to it, while the SPAs for the three trains were almost expired, “The company is finalising its strategy for the re-marketing of LNG volumes for Trains 1, 2, and 3 whose SPAs are nearing expiration.”
It further stated: “Activities are also ongoing for the marketing of volumes for the proposed Train 7 project.”
Buyers of volumes in the three trains with expiring SPAs include Enel, gas Natural, GALP Gas Natural, Engie Global LNG, and Botas.
Similarly, following the recent recession in global oil prices, the company stated that it has in recent times delivered LNG cargoes to the Far East, Middle East, South America, and United Kingdom through its existing customers and spot Free on Board (FOB).
It added in the document that through Master Sale Agreements (MSAs) with several companies, volumes have been delivered to receiving facilities in Japan, South Korea, Taiwan, China, India, Brazil, Kuwait, and Argentina, thus retaining its position as a major player in the global LNG industry.
Currently, the NLNG has a six-train complex of 22 metric tonnes per annum (mtpa) LNG nameplate production capacity, and 5mtpa Natural Gas Liquids (NGLs) production
capacity, with which it said it can deliver up to 300 cargoes of its products annually.
The document also stated that Trains 1 and 2 which are referred to as its base projects were financed by its shareholders with $3.6 billion, while Train 3 referred to as expansion project was financed with $1.8 billion.