BG Group, NLNG Strike Supply Deal

BG Group plc has signed a Sale and Purchase Agreement with Nigeria LNG (NLNG) for the acquisition of 2.25 million tonnes per annum (mtpa) of LNG for a 20-year term from the planned Train 7 project in Finima, Bonny Island, Nigeria.

Cargoes will be delivered on an ex-ship basis to BG Group's North American marketing business at Lake Charles, La.

Martin Houston, BG Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said:

"This agreement with NLNG adds to our existing supply arrangements through Trains 4 and 5 which came into effect last year. It enhances the profitable long-term growth of BG's LNG supply portfolio and reflects the strength of BG's competitive position in the Atlantic Basin."

BG Group plc is a global natural gas business. Active on five continents in 25 countries, it operates four business segments Exploration and Production, LNG, Transmission and Distribution and Power.

NLNG Train 7 is planned as an 8.4 mtpa facility. The shareholders in NLNG are Nigerian National Petroleum Corporation (NNPC) (49%), Shell Gas B.V., (25.6%) Total LNG Nigeria Limited (15%) and ENI International (N.A.) N.V. S.a'r.l. (10.4%).

In January 2006, BG entered into a Memorandum of Understanding (MoU) with Nigeria's Brass LNG for the acquisition of LNG with initial deliveries expected to start during 2011. Final volumes will be confirmed on completion of the Sale and Purchase Agreement that is expected in 2007.

In February 2006, BG signed a Joint Venture Project Development Agreement for a liquefaction plant at Olokola (OKLNG) on the southwestern coast of Nigeria. The proposed project will comprise four LNG trains of approximately 5.5 mtpa each, with the development envisaged in two phases of 11 mtpa capacity. BG Group has a 13.5% share in the project and the remaining partners are - NNPC (49.5%, Chevron OKLNG Holdings Limited (18.5%) and Shell Gas and Power developments B.V. (18.5%).

In January 2006, BG Group (along with our partners Sahara Energy and Seven Energy) signed a Production Sharing Contract with NNPC with respect to Block 332 offshore Nigeria. BG holds a 45% interest in and operatorship of this block. Block 332 is located in deep water (100 1,000m) offshore western Niger Delta, approximately 100km southeast of the commercial capital Lagos and lies between latitudes 5 50'N and 6 20'N.

In the USA, BG LNG Services LLC, (BGLS) holds, through 2028, 100% of the firm capacity rights at North America's largest operating LNG importation terminal, Lake Charles in Louisiana. This facility has storage capacity of 9 billion cubic feet (bcf) and sustained send out capacity of 1.8 billion cubic feet per day (bcf/d).

Additionally, BGLS holds, through 2027, firm regasification rights of 446 million standard cubic feet per day (mmscf/d) at the Elba Island LNG terminal near Savannah, Georgia. Expansion work is expected to increase its throughput capacity to 1.17 bcf/d from 2012.

BG has long-term purchase agreements in place with Equatorial Guinea LNG Train 1, S.A. for the supply of 3.4 mtpa for 17 years from 2007; with Nigeria LNG Ltd, for the supply of 2.3 mtpa for 20 years which began in January 2006; with Egyptian LNG Train 2 for the supply of 3.6 mtpa for 20 years and with Atlantic LNG Train 4 for the supply of BG Group's liquefaction capacity (28.89%) in the 5.2mtpa facility under long-term contract. BG is also a shareholder in Egyptian LNG Train 1 which has an output of 3.6 mtpa all pre-sold to Gaz de France. A third Egyptian LNG train is under consideration.

ALNG Train 1, which came into operation in April 1999, has 3.1 mpta capacity (BG Group 26% shareholder). Trains 2 and 3, which became operational in August 2002 and April 2003 respectively, each have 3.4 mtpa capacity (BG Group 32.5% shareholder). Train 4 (BG Group 28.89% shareholder), is a fully integrated project for BG Group, involving the production and liquefaction of gas in Trinidad & Tobago, the shipping of LNG to Lake Charles and the subsequent regasification for onward sale into the US market.

Related Companies
 Company: Shellmore info


 - Global Carbon Prices Must Soar to Meet Paris Climate Target Report (May 30)
 - No New Demand, More Supply Leaves Spot Price Languishing (May 26)
 - Shell Shareholders Reject Emissions Target Proposal (May 23)
 Company: Total S.A.more info
 - Total Looks At Downstream In Morocco, S. Africa To Spur Gas Demand (Jun 8)
 - Total Asks to Revisit South Sudan Oil-Blocks, Minister Says (Jun 5)
 - Transporters Strike Causes Shortages at Petrol Stations in France (May 30)
 Company: BG Groupmore info
 - Despite Cuts, Big Oil to Expand Production into the 2020s (Sep 5)
 - Sound Energy Appoints Ex-BG Exploration Lead (Aug 24)
 - Shell Misses Expectations As Earnings Plunge On Oil, BG Costs (Jul 28)
 Company: Chevron Corporationmore info
 - Grassroots Kazakhstan Base Oil Project Goes to CB&I (Jun 12)
 - No New Demand, More Supply Leaves Spot Price Languishing (May 26)
 - South Africa Wants Sinopec to Retain Refinery Capacity (May 25)
 Company: ENImore info


 - ENI Says To Open Ghana Oil And Gas Field Three Months Early (Jun 9)
 - Norwegian Union Threatens Strike At Statoil, Shell, Eni Pplatforms (Jun 6)
 - Italy's Eni Signs LNG Deal In Mozambique, Raising Hopes Of Gas Boom (Jun 1)
 Company: Gaz de Francemore info


 - Grenland Group Delivers Gjoa Subsea Structures (Sep 1)
 - Plexus to Supply Wellhead Systems for Mediterranean E&P Activities (Jul 20)
 - ELNG Completes First Ever Health & Safety Partnership Program with GE O&G (Jul 15)
 Company: Nigeria LNGmore info
 - Nigeria LNG Advances Ship Vetting with Navarik (Apr 26)
 - Two Charged in KBR Bribery Case (Mar 5)
 - Nigeria LNG Opts for More: Baker Energy Contract Renewed (Jan 30)
 Company: Nigerian National Petroleum Corp. (NNPC)more info
 - NNPC: Indonesian Firm Interested In Building Crude Oil Refinery In Nigeria (Jun 21)
 - NNPC Head: Nigeria Oil Sales Should Be Centralized In Sector Overhaul (Dec 7)
 - Savannah Signs MOU with NNDC, NNPC (Nov 17)
 Company: Seven Energy Nigeria Limitedmore info
 - BG Group, NLNG Strike Supply Deal (Feb 12)
 - BG Group Signs Nigerian Production Sharing Contract (Jan 20)
 Company: Sahara Energy Exploration & Production Limitedmore info
 - Gallic Energy Enters LOI to Purchase Canadian Properties (Mar 18)
 - Sahara and Mirage Enter Definitive Arrangement Agreement (Feb 26)
 - Sahara Energy Announces Non-Brokered Financing of 2 Million Shares (Dec 21)
 Company: Brass LNGmore info
 - Total, Nigeria LNG Sign Sale and Purchase Deal (Feb 13)
 - BG Group, NLNG Strike Supply Deal (Feb 12)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Engineer Research & Process Development
Expertise: Process Engineer
Location: Tomball, TX 77377, United States
 
Downhole Technician I - Bakersfield, CA
Expertise: Driller|Mechanical Technician|Well Control
Location: California, CA
 
NDT Level II RT Technician
Expertise: NDT Technician
Location: Brighton, CO
 
search for more jobs

Brent Crude Oil : $45.54/BBL 0.70%
Light Crude Oil : $43.01/BBL 0.63%
Natural Gas : $2.929/MMBtu 1.34%
Updated in last 24 hours