Flood of Nigerian LNG cargoes expected in India

Vol 15, PW 1 (14 Jul 11) Midstream & Downstream

Religious and ethnic violence has claimed thousands of lives in Nigeria over the past few years but for the past few months this West African nation has been comparatively peaceful - which is excellent news for LNG traders! PETROWATCH learns a flood of LNG cargoes from Nigeria is expected to land in India in the coming months, most of them sourced by Shell from the Nigeria LNG liquefaction facility at Bonny Island, where it has a 25.6% stake.

Most recently, on July 2, Shell landed a LNG cargo sourced from Nigeria LNG for Reliance at its Hazira LNG terminal in Gujarat. This 135,654-cubic metre LNG cargo arrived at Hazira aboard LNG tanker Sokoto, owned by Nigeria LNG subsidiary Bonny Gas Transport and operated by London-based Shell International Trading and Shipping Company (STASCO).

Flying the Bermuda flag, Sokoto usually ferries LNG from Nigeria to France and has berthed at Hazira only once before, in March 2010. Sokoto’s LNG cargo was bought by Shell for Reliance from junior Hazira partner Total, which in turn sourced it from Nigeria LNG.

Separately, GAIL landed a cargo sourced from Nigeria LNG at Petronet-LNG’s Dahej LNG terminal in Gujarat on July 6. GAIL’s 146,589-cubic metre LNG cargo arrived at Dahej aboard LNG tanker Clean Energy.

Flying the Marshall Islands flag, Pegasus Shipholding-owned Clean Energy left Dahej sometime in the early evening on July 7. GAIL imported this cargo under a long-term LNG supply deal signed in June with Gazprom Marketing and Trading Singapore, a subsidiary of Russia’s Gazprom.

In turn, Gazprom Marketing and Trading sourced the cargo from Gazprom Global LNG, which sourced it from Nigeria LNG. GAIL’s long-term deal with Gazprom is for 2.5m t/y of LNG supplied over 25 years.

Gazprom has signed similar deals with Petronet-LNG and GSPC.