NIGERIA - NLNG Expansions.

NLNG exports from five trains, with a capacity of 17m t/y. Train 6 by late 2007 will bring this to 22m t/y of LNG and 5m t/y of NGLs. Trains 7&8 will raise the capacity to 37m t/y by 2012/13, with NLNG's actual export potential to exceed 40m t/y. Its Trains 1&2 went on stream in June and October 1999. The partners in NLNG are NNPC (49%), Shell (the leader, 25.6%), Total (15%) and ENI 10.4% - seee background in GMT7NigrGasExpAug15-05).

The NLNG trains are on Bonny Island in Rivers State in southern Nigeria. Train 7 could come online in 2011. The complex is supplied from dedicated (non-associated) gas fields, but it is anticipated that within a few years half of the natural gas feedstock will consist of associated gas from existing oilfields.

The first LNG cargo from its Train 4 went to the US in early 2006. The train had begun production in November 2005. The first cargo was loaded on Jan. 7, 2006, for delivery to the Lake Charles terminal. NLNG Managing Director Chris Haynes then said production at Train 5 had also started, which was the last leg of its $2.1 bn expansion aimed at raising earnings from LNG exports to $4 bn per annum. He said with the coming on stream in late 2007 of Train 6, NLNG would to export 14m t/y to Europe and 8m t/y to the US. NLNG has buyers in Europe and America.

BG Group on Feb. 13, 2007, said it had signed a sale and purchase agreement (SPA) to buy 2.5m t/y of LNG from NLNG. BG Group will acquire the LNG for 20 years from NLNG's Train 7. Cargoes will be delivered to BG's North American marketing business at Lake Charles, Louisiana. BG Executive Vice President Martin Houston 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". A spokesman for NLNG said: "we are excited about the agreement. It is a continuation of our long standing business relationship with BG".

ENI on Feb. 12, 2007, signed a 20-year SPA with NLNG for acquisition of 1.375m t/y (about 2 BCM/y) of LNG. This will be part of the volume which would be produced from Train 7, expected to be on stream in 2012.

The LNG will be delivered by NLNG to the terminal of Cameron, Louisiana, where ENI holds a re-gasification capacity of some 6 BCM/year, and will be sold to the US market. The volumes of LNG delivered to ENI through this SPA represent some 17% of the whole production of Train 7. This SPA will make a further sizeable contribution to ENI supplies' portfolio, enabling the company to strengthen its brand LNG activities in the US and its role as leading player in the global LNG market.

Total on Feb. 13, 2007, said its wholly owned gas and power trading and marketing unit Total Gas & Power (TGPL) and NLNG had signed a 20-year SPA for 1.375m t/y of LNG to be produced by Train 7. The LNG is to be delivered to the US and Mexico to meet the increasing demand for natural gas in those countries, and in particular to Total's regasification capacity at the Sabine Pass and Altamira LNG terminals.

Yves-Louis Darricarrere, president of TGPL said: "With this LNG purchase, Total is delighted to further expand the scope of its co-operation with Nigeria, which is an important part of Total's portfolio and a key producer in the LNG industry". With the signing of this SPA, long-term purchases of LNG contracted by Total are expected to grow to over 10m t/y.

A trail-blazer in the LNG business since 1964, Total has interests in six of the world's largest LNG plants which account for around 40% of world LNG production capacity. About 30% of the gas produced by Total in 2006 was dedicated to the LNG industry. Total is strengthening its position across the LNG chain, as illustrated by its August 2006 signatures to acquire a stake in Brass LNG in Nigeria, in the Ichthys LNG project in Australia and in the Qatargas-2 project in Qatar. After entry into the South Hook terminal in the UK, Total holds interests in five regasification terminal projects to ensure additional markets for its brand LNG business from the Middle East, the Gulf of Guinea and, in the near future, Northern Europe.