Through a service agreement with the terminal owner, Southern LNG Inc, BGLS will, from January 1, 2004 to December 1, 2023, hold firm capacity rights at the terminal of 446 million cubic feet per day (mmcfd). Of this, approximately 159 mmcfd of terminal capacity may be utilized to regasify LNG that Marathon Oil Company is entitled to sell at Elba Island. The assigned agreements include the purchase of LNG from BG and its upstream partners out of Atlantic LNG's Trains 2 and 3 in Trinidad and Tobago and agreements for the supply of natural gas downstream of the Elba Island terminal.
Speaking today, Martin Houston, BG Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said: "The deal we have announced today represents another step forward in the development of BG's Atlantic Basin strategy. It underscores BG's ability to create natural gas chains and reinforces BG's commitment to LNG developments in Trinidad and Tobago and LNG supply into the US market. With LNG projected to supply a significant portion of US energy demand in the next decade, BG has the skills and experience to capture valuable market opportunities."
The total consideration for the transaction is US$127 million in cash, of which $50 million is deferred and conditional upon gas off-take arrangements.
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