FW: NLNG MOU Press Release-fyi

Nigeria LNG Signs MOUs With Enron, Iberdrola

10/03/2001
Dow Jones Energy Service
(Copyright © 2001, Dow Jones & Company, Inc.)

LAGOS -(Dow Jones)- Nigeria LNG Ltd has signed memoranda of understanding
with Enron Corp. and Spanish power company Iberdrola for the sale of LNG
volumes from the 4th and 5th production units of its expansion program, NLNG
said in a statement released here Wednesday.

Nigeria LNG plans to commence production from the two new units in 2005.
However, it needs firm sales agreements accounting for all the production from
those units before it will finalize the invesment.
The latest deals bring to 6.5 BCM/year the LNG volume from units four and
five already committed. Each of the new production units will have capacity of
4 BCM/year.

Nigeria LNG and Enron had earlier signed an MOU for 1 billion cubic meters
per year for the expansion program, also known as NLNG Plus volumes. The
second agreement raises Enron's share of NLNG Plus volumes from 1 BCM/year to
4 BCM/year.

Spanish and North American receiving facilities are the primary destinations
for LNG shipments to Enron under the new agreement, the statement said.

Iberdrola, which signed an MOU for 1.5 BCM/Year, will receive its shipments
at the Spanish receiving terminal of Huelva.

Jean-Francois Capelle, General Manager, Commercial, of Nigeria LNG Limited,
said MOUs will soon be signed for the remaining volumes of LNG from these
units, and that work had already started on sales and purchase agreements to
firm up these contracts. These may be signed by the last quarter of the year.

NLNG commenced commercial operation in October 1999 with its two-unit, 5.9
-million tons per annum Base Project. A third unit of similar design and
capacity as the Base Project unit is currently under construction and is
scheduled for completion in late 2002.

On completion of the NLNG Plus Project, NLNG will have an overall production
capacity of 17 million tons per annum of LNG and 2 million tons per annum of
LPG.

NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian
National Petroleum Corporation (49%), Shell (25.6%), TotalFinaElf (15%) and
Agip (10.4%).
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-By Vincent Nwanma; +234-1-585-0849/775-6185; vinwanma@beta.linkserve.com

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