Liquefied`s natural gas agreement with Galp Trading SA will allow the company to obtain a 10-year delivery on the basis of trains 1, 2 and 3 from a six-train nlng production plant on Bonny Island. The move is part of the remarketing of certain volumes of NLNG`s existing trains, as some contracts are expiring. Nigeria Liquefied Natural Gas Limited (NLNG) and Italy`s Eni have signed a long-term contract to supply 1.5 million tonnes of LNG per year over a 10-year period. LNG volumes are made from NLNG 1, 2 and 3 trains on Bonny Island, Nigeria. Why agreements are important: the agreement ensures that NLNG continues to supply LNG worldwide. According to the company, this will strengthen Nigeria LNG`s position as one of the world`s leading LNG suppliers. Naturgy also said on Thursday that it would meet to discuss its natural gas supply contract with Algerian state oil group Sonatrach. In the United States, Naturgy has entered into agreements on the volumes of Denponen corpus Christi and Sabine Pass of Cheniere Energy Inc. As the market evolves, much of the world`s gas trade is still supported by long-term contracts signed for delivery times of up to 20 years. The price structures negotiated years ago may not reflect the value of natural gas today. Crude oil prices continued to fall sharply and, while the formulas of some oil-linked contracts protect against the effects of high crude oil prices on buyers and low oil prices on sellers, buyers of low-priced LNG, available on the spot market and linked to natural gas hub prices , have been marginalized.
“NLNG Train 7 is of the utmost importance to the country,” said Mele Kyari, CEO of NNPC. “Gas delivery to train 7 is the key. Gas supply is one of the critical conditions to be provided, and we will not be able to build the facility until we have confirmed the gas supply. NNPC announced via Twitter that the delivery contract for trains 1, 2 and 3 would last 10 years, and for train 7, it would be 20 years. In October, the GSA agreed to an agreement in advance on gas supply with the three joint ventures. Both agreements will also be effective for a decade. Details of the contracts signed with Eni and Total Gas-Power showed that 1.5 million tonnes are delivered each year for both contracts.