Commodities trader Vitol has signed a 10-year deal with Nigeria Liquefied Natural Gas (NLNG) to buy 500,000 tonnes of LNG per year, ramping up its long-term presence on the market.
Commodity houses, including Vitol rivals Trafigura and Gunvor, are increasingly expanding their traded spot cargo volumes with multi-year LNG deals as a global push for cleaner energy helps the market grow and mature.
“The agreement underscores NLNG’s drive…to deliver LNG on a global scale in a low carbon world where gas/LNG will continue to be the preferred complementary energy source alongside renewables,” Vitol said in a statement.
The deal also helps NLNG remarket volumes from existing production lines at its Bonny Island plant with a number of contracts due to expire.
Vitol said it would purchase volumes from Trains 1, 2 and 3 of a six-train NLNG production facility on Bonny Island under the sales and purchase agreement, which was signed on Dec. 11 and will start in October 2021.
NLNG has also been looking for buyers for volumes from a yet-to-be-built Train 7.
Source: Reuters