The MoU envisages that BGLS will acquire 2.5 million tons per annum of LNG for 20 years, beginning in 2005 or early 2006, from the NLNG Plus project (Trains 4 and 5) in Finima, Bonny Island, Nigeria.
In addition, the MoU allows for BGLS to take, from the end of 2003, excess volumes from Trains 1, 2 and 3 which are not taken by existing long-term buyers. NLNG will be responsible for shipping the LNG to the Lake Charles terminal where BG has 80 percent of capacity rights until September 2005 and 100 percent thereafter until 2024.
Frank Chapman, Chief Executive, BG Group plc, said: "We are delighted to be making another announcement about BG Group's developing LNG portfolio. This agreement with Nigeria LNG secures delivery of Trains Four and Five straight into Lake Charles and provides the opportunity to take additional cargoes from Trains One to Three into the USA market. This agreement and the Marathon announcement made today represent further major steps in building up our portfolio of long-term competitively priced LNG."
BGLS and NLNG expect to conclude a definitive Sale and Purchase Agreement and obtain all relevant authorizations by the third quarter of 2003.
The shareholders in NLNG are Nigerian National Petroleum Corporation (49 percent), Shell Gas B.V., (25.6 percent) TotalFinaElf LNG Nigeria Limited (15 percent) and Agip International (10.4 percent).
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