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African LNG to go to Louisiana facility In its drive to become a leading LNG player, BG wants Iran’s gas Gary Park Petroleum News Canadian correspondent
BG Group of the United Kingdom says progress has been made on two liquefied natural gas deals that would see the bulk of production from two African projects shipped to a BG-controlled terminal in Louisiana.
BG said May 13 that letters of intent have been signed for two long-term sales and purchase agreements that could involve exports totaling 6.9 million metric tons a year to the Lake Charles terminal.
A memorandum between BG and Nigeria LNG covers deliveries of 2.5 million metric tons a year for 20 years, starting no later than early 2006. Final terms are expected to be concluded in the third quarter of 2003.
Shareholders in Nigeria LNG are Nigeria’s National Petroleum Corp. 49 percent, Shell 25.6 percent, TotalFinaElf 15 percent and Eni 10.4 percent. Second deal involves Marathon A second deal involves a letter of understanding with a Marathon Oil subsidiary covering 3.4 million metric tons a year of LNG deliveries from Equatorial Guinea for 17 years, starting in 2007.
BG Chief Executive Officer Frank Chapman said in a statement that although Lake Charles is seen as the principal market, there is “total flexibility” on the destination.
BG has 80 percent capacity rights at Lake Charles until September 2005 and 100 percent from then until 2024.
In its drive to become a leading global LNG player, BG has embarked on preliminary negotiations for a share in development of Iran’s South Pars field and has deals in the works in Trinidad and Egypt.
Chapman told reporters that once BG has locked up an LNG supply portfolio, it will explore both long-term and short-term opportunities in the U.S. market.
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