TANKERS ACQUIRED FOR NIGERIAN LN EXPORTS

A unit of Royal Dutch/Shell has lined up two of at least four tankers for a big project to export liquefied natural gas from Nigeria. Shell Gas Nigeria BV, acting for the project, exercised its purchase options on two LNG tankers, designated hull Nos. 559 and 564, owned by Zenit companies. The vessels are to begin Nigerian operations in 1995, carrying LNG to customers in Europe and on the U.S. East Coast.

Jan. 29, 1990

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A unit of Royal Dutch/Shell has lined up two of at least four tankers for a big project to export liquefied natural gas from Nigeria.

Shell Gas Nigeria BV, acting for the project, exercised its purchase options on two LNG tankers, designated hull Nos. 559 and 564, owned by Zenit companies.

The vessels are to begin Nigerian operations in 1995, carrying LNG to customers in Europe and on the U.S. East Coast.

Before that occurs, they are to be refurbished, then begin operating under 4 year charter to two undisclosed LNG exporters in the Far East. Shell Gas said heads of agreement has been signed for that purpose, and formal charters are to be signed soon.

Ownership of the Swedish built tankers was transferred Jan. 18 to a recently formed Bermuda company, Enellengee Ltd., a subsidiary of Nigeria LNG Ltd. The latter is a partnership of project sponsors Nigerian National Petroleum Corp. 60%, Shell Gas 20%, and Agip SpA and Ste. Nationale Elf Aquitaine 10% each.

A loan for Enellengee's purchase and refurbishment of LNG 559 and LNG 564 came from a group of banks made up of Citibank NA, Credit Lyonnais, and Hong Kong Shanghai Banking Corp. Ltd. Enellengee also plans to use proceeds from the loan to buy two more LNG tankers.

The aim of the project, to cost more than $2.5 billion, is to export about 4 million metric tons/year of LNG. Nigeria LNG last year let a contract to a combine of Technip and M.W. Kellogg Co. for project specification preparation for a liquefaction plant in Rivers State (OGJ, Nov. 6, 1989, p. 32).