Thursday, February 20, 2014

BG Buys Nigerian LNG to Replace Supplies out of Egypt

To replace LNG supplies from its Egyptian operations, BG Group has bought six LNG cargos from Italian utility Enel. The cargos are coming from Nigeria’s NLNG plant where the Italian firm owns export capacity.
BG will take delivery of the cargos from October at the NLNG plant.
BG’s Egyptian LNG operations account for about one-fifth of the company’s production but has seen its share of gas shorted in Egypt. The firm said the government there had not honored agreements covering its share of gas from fields. Egypt has been siphoning off gas for export and diverting it to the domestic market, preventing BG from meeting its export obligations.
A force majeure has been served on BG’s Egyptian LNG and notices sent to the affected buyers and lenders.

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