*Some existing gas contracts to expire by 2022
08 April 2017, Sweetcrude, Lagos — The Nigeria LNG Limited has commenced talks with potential buyers of Liquefied Natural Gas, LNG, to replace some of the existing customers whose contracts will expire by 2022.
The contracts that will expire by 2022 take gas supplies from Trains 1, 2 and 3, which collectively produce nine million tonnes of LNG a year.
The Bonny Island plant of NLNG has six trains – 1, 2,3,4,5 and 6 – producing a total of 22 million tonnes per year.
Reuters quoted a senior official of the company as saying late on Wednesday at the Gastech trade conference in Chiba outside Tokyo, Japan that initial responses from buyers have been positive.
“Trains 1-3 are coming back to the market as they are out of contract by 2022. We started to remarket today,” he told Reuters at the conference.
“There are some who are guaranteed to buy,” the official said, though he provided no further details.
Trains are units that freeze natural gas into liquid form for export on ships.
Trains 1 and 2, which are referred to as its base projects were financed by its shareholders with $3.6 billion, while Train 3 referred to as expansion project was financed with $1.8 billion.
The company has a six-train complex of 22 metric tonnes per annum (mtpa) LNG nameplate production capacity, and 5mtpa Natural Gas Liquids (NGLs) production capacity, and has delivered over 3,000 cargoes of LNG to customers.
