Take a fresh look at your lifestyle.

Galp renews LNG deal with Nigeria LNG

Portugal’s Galp has signed a deal for 1 million tonnes per year of LNG from Nigeria LNG (NLNG), continuing the companies’ relationship.

The sale and purchase agreement runs for 10 years from Trains 1, 2 and 3. Supplies will begin in October 2021.

NLNG has signed a number of SPAs recently for production from the first three trains. Vitol signed up for 0.5mn tpy in December, with supplies starting in October 2021. Total and Eni also agreed new SPAs, taking 1.5mn tpy each from the three trains under 10-year agreements.

The Vitol deal is on a delivered ex-ship (DES) basis, while the Total and Eni ones have DES and free on board (FOB) aspects.

The International Group of Liquefied Natural Gas Importers (GIIGNL) reports that Galp has three contracts with NLNG. The Portuguese company has a deal for 0.26mn tpy from Trains 1 and 2, with another 0.73mn tpy from Train 3. The first of these contracts expires in 2020, GIIGNL says, while the second ends in 2023.

Galp’s third contract is for 1.42mn tpy from Trains 4 and 5, which expires in 2026.

Contracts for production from NLNG’s first two trains are all expiring in 2020-21, according to GIIGNL, while Train 3 contracts expire in 2023-24.

NLNG reached a final investment decision (FID) on Train 7, and debottlenecking of trains, in December 2019. This will provide an additional 6.6mn tpy of production as of 2024. Work on financing is ongoing, though.

Comments are closed.