BG Gas Marketing and Equatorial Guinea LNG sign Sale and Purchase Agreement for Liquefied Natural Gas supply

abarrelfullabarrelfull wrote on 17 May 2012 09:26

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22 June 2004

BG Gas Marketing Ltd (BGML), a wholly-owned subsidiary of BG Group plc, announced today that it has signed a long-term agreement with Equatorial Guinea LNG Holdings Limited (EGLNG) to purchase liquefied natural gas (LNG). BGML announced on 13 May 2003 that it had signed a Letter of Understanding in relation to this supply.

The agreement provides for the supply of 3.4 million tonnes per annum of LNG for a period of 17 years, beginning in late 2007, from the LNG liquefaction plant being developed by EGLNG on Bioko Island, Equatorial Guinea. An Early Works Programme of construction has already begun and the plant is expected to be on-stream in 2007. Feedstock gas for the project will be sourced primarily from the Marathon-operated offshore Alba Field.

Martin Houston, Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said: “This agreement represents an important step in building our portfolio of long-term competitively priced LNG. The USA will be the principal market for this LNG, but the agreement provides us with flexibility on the destination of the LNG, enabling BG Group to take advantage of favourable conditions in other markets.”

EGLNG is jointly owned by subsidiaries of Marathon Oil Corporation and Compañía Nacional de Petróleos de Guinea Ecuatorial (GEPetrol).

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