Nigeria, Eni sign 10-year LNG supply deal
London, Jan. 28, 2020 (AltAfrica)–The Nigeria LNG Limited (NLNG) has signed a deal with Italian energy major Eni for the supply of 1.5 million tonnes of LNG per year, the African producer said in a statement on Monday.
The volumes will be supplied on both a free-on-board (FOB) and delivered ex-ship basis for 10 years from Trains 1, 2 and 3 of a six-train NLNG production facility on Bonny Island.
The deal follows a similar deal with France’s Total announced last week and a 0.5 million tonnes per year deal with commodity trader Vitol signed in December.
The company said it was primed for taking up a position in the ranks of top LNG companies with plans to grow its market share
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.
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.
NLNG — a joint venture between state-owned NNPC (49%), Shell (25.6%), Total (15%) and Eni (10.4%) — 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.
The shareholders in NNPC made the final investment decision for Train 7 in December last 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.