Nigeria LNG (NLNG) is renegotiating the contracts for its first three trains and could offer more flexible terms to buyers.
NLNG’s three trains have a combined liquefaction capacity of 9 mtpa, and long-term supply contracts account for 7.82 mtpa of this. All of these contracts are for 20 years or more and are due to expire by 2024. The prices are oil-indexed, but most of the contracts are unlikely to be renewed under the existing terms. The LNG market is expected to remain oversupplied until at least 2020, prompting buyers to opt for more flexible shorter-term contracts or spot cargoes.
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