Eni signs long-term supply deal with Nigeria LNG

Italian oil and gas firm Eni has signed a long-term deal with Nigeria LNG (NLNG) to purchase 1.5 million tonnes (Mt) of liquefied natural gas (LNG).

Financial terms of the deal have not been disclosed.

NLNG is a joint venture (JV) between Nigerian National Petroleum (NNPC), Eni, Shell and Total.

Eni owns a participating 10.4% interest in NLNG, NNPC holds 49% while Shell and Total respectively own 25.6% and 15%.

The liquefied natural gas will be produced through existing first, second and third trains at Bonny Island, Nigeria.

Eni added that its local affiliate NAOC is one of the associated gas suppliers to NLNG.

In a press statement, Eni said: “The deal, together with the one for 1.1Mt of LNG executed last December between Eni and NLNG, allows Eni to increase its global LNG portfolio starting from 2021 and to support further the development of its presence in the main destination markets worldwide.”

In July 2018, NLNG awarded FEED contracts awarded to Saipem, TechnipFMC and Chiyoda for the seventh LNG train (NLNG T7) to enhance its output and strengthen its position in the global market as a supplier.

In another statement, Eni announced the discovery of a gas and condensate in the Mahani exploration prospect located onshore in the Area B Concession of UAE Sharjah Emirate.

The new natural gas and condensate field has flow rates of up to 50 million standard cubic feet per day (Mscf/d).

Eni holds a 50% stake in the Concession Area B, with SNOC – the National Oil Company of Sharjah –  holding the remaining 50% stake and acting as operator.