By Eric Watkins
Middle East Correspondent
NICOSIA, May 14 -- Nigeria LNG Ltd. (NLNG) has stepped up its presence in the US spot LNG cargo market following an agreement to supply BG LNG Services (BGLS) with 3 billion cubic meters/year (bcmy) of LNG for 20 years.
Under the terms of a memorandum of understanding signed on May 13, NLNG will be responsible for shipping LNG from Trains 4 & 5 at Finima, Bonny Island, into Lake Charles, La., where BGLS has 80% capacity rights until September 2005 and 100% until 2024.
NLNG's Trains 4 and 5 are expected to come on stream in 2005. Each train has a capacity of more than 4 million tonnes/year (mty)of LNG and 0.5 mty of LPG.
The MOU also allows for BGLS to lift, from the end of 2003, excess volumes from Trains 1, 2, and 3 that are not taken by NLNG's existing long-term buyers. BGLS and NLNG expect to conclude a definitive sale and purchase agreement and obtain all relevant authorizations by third 2003.
Andrew Jamieson, Managing Director of NLNG, told OGJ Online he is "delighted" with the consolidation of the company's position in the world's largest gas market. Since its start-up in 1999, NLNG has shipped 26 spot cargoes to Lake Charles.
Jamieson attributed the new agreement to "diligence and the development of a sustained long-term relationship with BG LNG Services in the spot market."
He also welcomed BG LNG Services as a new long-term contract customer of NLNG.
BG LNG Services LLC is the US arm of BG Group PLC.
Other buyers of NLNG Trains 4 and 5 volumes are Shell Western LNG 1.5 bcmy, also bound for the US, Spain's Iberdrola 0.5 bcmy, Portugal's Transgas 2.0 bcm/y, and Italy's ENI 3.3 bcmy.
NLNG Ltd. is a joint venture of Nigerian National Petroleum Corp. 49%, Shell Gas BV 25.6%, TotalFinaElf LNG Nigeria Ltd. 15%, and Agip International (NA) BV 10.4%.
