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 SPA 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 BGLS has 81 per cent of capacity rights until September 2005 and 100 per cent thereafter until 2024.
Martin Houston, Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said: "This agreement represents another major step in building up our portfolio of long-term competitively priced LNG. It secures delivery of Nigeria LNG Trains 4 and 5 straight into Lake Charles and provides the opportunity to take additional cargoes from Trains 1 to 3 into the USA market."
The shareholders in NLNG are Nigerian National Petroleum Corporation (49 per cent), Shell Gas B.V., (25.6 per cent) Total LNG Nigeria Limited (15 per cent) and ENI International (N.A.) N.V. S.a'r.l. (10.4 per cent).
LNG represents one of BG Group's core business segments. The Company is involved in developing LNG projects in Trinidad & Tobago, Egypt, Italy, India, Indonesia, Bolivia and Iran. In January 2002, BG LNG Services, LLC (BGLS), a wholly owned subsidiary of BG Group, took 81 per cent of the capacity at North America's largest operating import terminal, Lake Charles in Louisiana, which has the capability to receive, store, vaporise and deliver an average daily send-out of 4.7 million tonnes per annum (mtpa). From September 2005, BGLS will take 100 per cent of the capacity. In March 2003, the Federal Energy Regulatory Commission gave approval for expansion of the terminal to 8.9 mtpa. Construction of the expansion plant is expected to be completed by the beginning of 2006.
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