BG Gas Marketing Ltd (BGGM), a wholly owned
subsidiary of BG Group plc, today announced that it has entered
into a Memorandum of Understanding with Nigeria’s Brass
LNG for the acquisition of 2.0 million tonnes per annum (mtpa)
of LNG.
The proposed deal will last for a 20 year term, with initial
deliveries expected to start during 2010.
It is planned that cargoes will be delivered on an ex-ship
basis to BG Group's North American marketing business at Lake
Charles, Louisiana and Elba Island, Georgia. However,
in order to optimise sales opportunities in alternative markets,
BGGM will retain the right to divert cargoes to other destinations
including its own market positions under development in the
UK (Milford Haven) and Italy (Brindisi).
Martin Houston, BG Executive Vice President and Managing Director,
North America, Caribbean and Global LNG, said:
“Today’s agreement signifies another important
step in the growth of BG’s portfolio of long-term, competitively
priced LNG. Leveraging from our US terminal positions,
this transaction again demonstrates BG’s ability to utilise
our market reach and expertise in order to maximise the value
of our supply portfolio for ourselves, our LNG suppliers and
our customers.”
Notes to Editors:
BG Group is global natural gas business. Active in more
than 20 countries, it operates four business segments – Exploration
and Production, LNG, Transmission and Distribution and Power.
In the USA, BG LNG Services, LLC (BGLS), holds, until 2024,
100% of the capacity rights at North America’s largest
operating LNG import terminal, Lake Charles in Louisiana. This
has the capability to receive, store, vaporise and deliver
an average daily send out of 1.2 billion cubic feet per day
(bcfd). Expansion work is scheduled to increase the average
send-out rate to 1.8 bcfd by mid-2006. BGLS also currently
holds supply and regasification rights of 446 million cubic
feet per day (mmcfd) for 22 years at the Elba Island LNG terminal
near Savannah, Georgia. BG recently announced an
agreement with an El Paso Corporation subsidiary to further
expand BG’s position at Elba Island to 1.17 bcfd of sendout
capacity from 2012.
BG has long-term purchase agreements in place with Equatorial
Guinea LNG Train 1, S.A. for the supply of 3.4 mtpa for 17
years from 2007; with Nigeria LNG Ltd, for the supply of 2.5
mtpa for 20 years beginning in early 2006; with Egyptian LNG
Train 2 for the supply of 3.6 mtpa for 20 years and with Atlantic
LNG Train 4 for the supply of BG Group’s liquefaction
capacity (28.89%) in the 5.2mtpa facility under long-term contract.
In Trinidad & Tobago, BG is a shareholder in Atlantic LNG,
which has four trains producing 15 mtpa of LNG, most of which
is sold in the United States market. Train 4 came onstream
in December 2005.
In the Middle East, BG is a shareholder in Egyptian LNG Train
1 which came on stream, ahead of schedule, in mid 2005, with
a planned output of 3.6 mtpa – all pre-sold to Gaz de
France. Train 2 came onstream in September 2005. A third
LNG train is under consideration. There is scope at the development
site for up to six trains.
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