Nigeria LNG signed a 20-year gas supply agreement with joint venture partners for the long-awaited Train 7 project to boost its liquefied natural gas plant on Bonny Island it said.
NLNG, which produces liquefied natural gas (LNG) for export, is possessed by state-run Nigerian National Petroleum Corporation (NNPC) and foreign energy firms Royal Dutch Shell, Total and ENI, said it had signed a feed gas deal for Train 7.
The agreement is one of the crucial conditions for a final investment decision on Train 7, NLNG said in a statement, adding it needed a confirmed gas supply before building the plant.
Six LNG processing units are being operated by NLNG, known as trains, on Bonny Island.
The project, which is expected to boost Nigeria’s LNG production by 35% to 30 million tonnes per annum (mtpa), has been postponed for several years. A previous deadline for a Train 7 FID in the fourth quarter of 2018 was not met.
Commodities trader Vitol has signed a 10-year deal with NLNG to buy 500,000 tonnes of LNG per year, expanding its long-term presence on the market. (Reporting by Alexis Akwagyiram; Writing by Chijioke Ohuocha; Editing by Susan Fenton and David Evans)
