Vitol Strikes 10-Year Deal for Nigerian LNG

Global commodities trader Vitol has cut a 10-year deal to buy 0.5mn mt/yr of LNG from the first three trains of the Nigeria LNG (NLNG) export plant, it said on December 11.

The supply will start in October 2021 on a delivered ex-ship basis, Vitol said in a statement. The Swiss-firm said the partnership would bring the pair “a wealth of global presence, market reach, and experience in LNG operations.”

NLNG has six trains capable of exporting 22mn mt/yr and is preparing to take a final investment decision on construction seventh, which would take its capacity up to 30mn mt/yr. Its shareholders are Nigerian National Petroleum, Shell, Total and Eni.

Vitol and other traders have concentrated more on LNG as demand has risen and the market grown increasingly liquid. In September the company agreed on a joint trading venture with Mozambique’s state-owned ENH to market that country’s exports.