The Nigeria LNG Limited has said the process of remarketing the LNG volumes from three of its trains has commenced with remarkable market appetite.
The NLNG said the remarketing followed the imminent expiry of the first sets of Sale and Purchase Agreements from Trains 1 and 2 and Train 3.
With six trains currently operational, the NLNG is capable of producing 22 million metric tonnes per annum of the LNG.
“Additionally, the NLNG has renewed its focus on growth and expansion with a strong ambition to realise the Train 7 plus project, which will raise the liquefaction capacity to 30mtpa,” the company said in its Facts and Figures on NLNG 2018.
According to the report, the NLNG currently manages 16 long-term LNG SPAs executed with 10 buyers on a Delivered Ex- Ship basis.
It said it had also executed over 51 spot free on board LNG Master Sale Agreements with various counterparties located across major LNG markets, enabling the prompt sale of excess production volumes on spot basis.
The company said deliveries of the LNG to the long-term LNG buyers had primarily been in the Atlantic Basin (Spain, France, Portugal and Italy in Europe, Turkey, Mexico and the United States).
It, however, said its cargoes had continued to find a place globally with deliveries to the Far East, Greater Middle East, South America and the United Kingdom, thus ensuring the NLNG’s position as a major player in the global gas and LNG industry.
“This has been made possible through commercial diversion deals entered from time to time with the long-term LNG buyers as well as through spot FOB sales to several counterparts, leveraging the MSA platform,” the NLNG added.
It said the expansion plans under the proposed Trains 7 plus project continued to make progress towards a final investment decision with several initiatives already in the works to ensure a timely realisation of the goal.
The company said with FID planned to take place soon, the commercial activities required to support the FID event had commenced.
It said, “In a rapidly evolving gas and energy market, it is no surprise that the central focus of the ongoing remarketing and commercial activities is to offer flexibility and reliability that meet buyers’ appetites and preferences on the one hand and create optimal value for the NLNG on the other.
“In line with its profile as a growing organisation, the NLNG will continue to consolidate its position as one of the major and reliable suppliers of the LNG in the world. In addition to this, the NLNG will continue to help build a better Nigeria by supplying products into the country including progression of the feasibility work on domestic LNG supply as a potential source of helping to bridge, specifically supporting the power sector, the energy gap.”
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.