Page 8 - DMEA Week 07 2020

DMEA TRANSPORT DMEA
NLNG consolidates remarketing plans via 10-year deal with Galp Trading
NIGERIA
The Nigeria LNG (NLNG) consortium has signed a long-term supply deal with Galp Trading for remarketed volumes of fuel from Trains 1, 2 and 3 of the its liquefaction plant on Bonny Island.
THE Nigeria LNG (NLNG) consortium has signed another long-term supply deal for remar- keted volumes of fuel from Trains 1, 2 and 3 of the its liquefaction plant on Bonny Island. e buyer is Galp Trading, an a liate of Portugal’s Galp Energia.
According to a statement from the consor- tium, the parties have signed a sales and pur- chase agreement (SPA). e document provides for NLNG to deliver of 1mn tonnes per year (tpy) of LNG to Galp Trading over a period of 10 years. e fuel will be supplied on a delivered ex-ship (DES) basis.
e nalisation of this SPA serves to consoli- date NLNG’s plans to remarket production from its rst three trains, the statement said. is, in turn, puts the group in a better position to pre- pare for the growth and consolidation that will occur as a consequence of the construction of a seventh production train, it said.
NLNG has also signed deals for remarketed LNG from Trains 1, 2 and 3 with Vitol (Switzer- land), Total (France) and Eni (Italy). Both Total
and Eni are shareholders in the consortium. The group said in a separate statement last month that the remarketing deals would support its “drive to continue to deliver LNG globally in consolidation of its position as one of the top-ranking LNG suppliers in the
world.”
NLNG has been seeking to remarket future
production from Trains 1, 2 and 3 because its existing contracts with Total, Naturgy (Spain), Galp (Portugal) and Botas (Turkey) are due to expire in 2020. ese contracts provide for the delivery of a total of 2.67mn tpy of LNG.
There are four shareholders in NLNG: Nigeria National Petroleum Corp. (NNPC), with 49%; Royal Dutch Shell (UK-Netherlands), with 25.6%; Total, with 15%, and Eni, with 10.4%. e partners recently made a nal investment deci- sion (FID) on the construction of a seventh pro- duction train at the Bonny Island plant. When complete, Train 7 will raise the facility’s produc- tion capacity from its current level of 22.5mn tpy to30mntpy.™
Uganda seeks Chinese funds to build oil roads
UGANDA
Uganda’s government is reportedly preparing to borrow more than €100mn from China for an infrastructure project designed to facilitate the development of oil elds in the Lake Albert region.
UGANDA’S government is reportedly prepar- ing to borrow more than €100mn from China for an infrastructure project designed to facil- itate the development of oil elds in the Lake Albert region.
Denis Katungi, the communications and media relations manager of Uganda Media Centre, said last week that the Cabinet had approved plans to seek Chinese funding for the project. Kampala is looking to borrow €108mn from the Industrial and Commercial Bank of China (ICBC) to cover the cost of building or improving roads along the Hohwa-Nyairon- go-Kyarusesa-Butoole, Kabaale-Kiziranfumbi and Masindi-Biiso routes in the western part of the country, he said.
Katungi did not say when the government hoped to nalise the deal with ICBC or reveal what terms the credit would carry. He did stress, though, that the infrastructure project would expand the network of roads needed to move workers, construction materials and other goods to the areas near the oil elds.
“Upgrading and constructing the national oil roads will facilitate the e cient development
of the strategic national oil resources,” he was quoted as saying by the Monitor.
He did not say whether Uganda had yet cho- sen a contractor for the project.
e road construction initiative will com- plement another project that is being executed with help from China. Last March, the Monitor reported, Kampala signed a contract with China Railway Seventh Group for the design and build- ing of a 97-km road in western Uganda. is road would link the Hohwa-Nyairongo-Kyarus- esa-Butoole, Kabaale-Kiziranfumbi and Masin- di-Biiso routes, it added.
Kampala has also put forward more ambi- tious plans for road construction in the areas near the Lake Albert oilfields. In May 2019, David Bahati, the minister of state for planning, asked Parliament to consider the government’s request to borrow the equivalent of $456.37mn from China Eximbank for the establishment of a 700-km network of roads to serve the areas where foreign investors are hoping to extract oil.
China’s government has been eager to nance such projects in recent years as part of its Belt and Road Initiative (BRI). ™
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