Total Gas & Power has signed a sales and purchase agreement (SPA) with Nigeria LNG (NLNG) for 1.5 million tonnes per year.
According to NLNG, the deal will run for 10 years on a delivered ex-ship (DES) and free on board (FOB) basis. Gas will come from some of the remarketed volumes from the first three trains at NLNG.
NLNG’s managing director Tony Attah and Total’s senior vice president for LNG Thomas Maurisse signed the agreement.
NLNG’s external relations manager Eyono Fatayi-Williams said the SPA “would boost the company’s global presence and market reach”. The company intends to be a “global LNG company, helping to build a better Nigeria”.
NLNG signed an SPA for 0.5mn tpy with Vitol in December 2019. These volumes are also remarketed gas from Trains 1, 2 and 3, with delivery on a DES basis.
NLNG did not provide information on when supplies to Total would start but gas to Vitol will start in October 2021.
A final investment decision (FID) was taken on Train 7 at the end of 2019, which should take production to 30mn tpy when coupled with debottlenecking plans. Financing on this train is still being worked through. According to a recent report in Nigeria’s The Nation newspaper, Sumitomo Mitsui Banking Corporation (SMBC) and Guaranty Trust Bank have been appointed as advisers.