BG Group and Enel sign Brindisi LNG Sale and Purchase Agreement

abarrelfullabarrelfull wrote on 17 May 2012 10:47

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24 JANUARY 2005

BG Group has today announced the signing of a Sale and Purchase Agreement (SPA) for the supply of 3.2 billion cubic metres per annum (bcma), or 2.4 million tonnes per annum (mtpa), of LNG to Enel, beginning in 2008, at the Brindisi LNG terminal in southern Italy. This supply will initially be sourced from Egyptian LNG Train 2, the output of which was sold in its entirety to BG Group’s subsidiary, BG Gas Marketing (as announced on 25 September 2003).

Until Brindisi LNG is operational the production from Egyptian LNG Train 2, in which BG Group is a 38 per cent shareholder, will be supplied primarily to the Lake Charles LNG importation terminal in Louisiana, USA.

On 20 December 2004, Brindisi LNG SpA, a joint venture between BG Group and Enel, announced that the Engineering, Procurement and Construction (EPC) contract for the LNG importation terminal had been awarded to a consortium led by Tecnimont SpA and including Mitsubishi Heavy Industries Ltd, Grandi Lavori Fincosit SpA, Consorzio Cooperativa Costruttori, Sofregaz S.A and Vinci Construction Grands Projets SAS.

Speaking today, BG Group Executive Vice President Mediterranean Basin and Africa, Stuart Fysh, said: "This sale of LNG to Enel, together with the recent Brindisi LNG EPC contract award, represents a significant step forward in the development of the Brindisi LNG terminal and the importation of a new long term source of competitively priced natural gas to Italy. Brindisi is an important building block in the development of BG's strategic plans for LNG transportation and trading in the Atlantic Basin."

The Brindisi LNG terminal, which is strategically located to receive LNG from the Mediterranean and Atlantic Basin and from the Gulf states will be capable of processing 8 billion cubic metres - or 6 million tonnes - of natural gas per annum. It is scheduled to begin operating in 2008.

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