Home News Saipem-led JV wins contract for LNG project in Nigeria, as Spot prices decline

Saipem-led JV wins contract for LNG project in Nigeria, as Spot prices decline

by Business News Report

A joint venture including Italian oil services group Saipem, Japan’s Chiyoda Corp and Korea’s Daewoo E&C has been awarded a new contract related to an LNG project in Nigeria, Chiyoda said in a statement on Friday. Saipem will be the leader of the joint venture. The contract is for the front-end engineering design (FEED) and preparation of an engineering, procurement and construction (EPC) proposal for the NLNG Train 7 project, meant to expand an existing LNG plant operated by Nigeria LNG Limited, it added. Nigeria LNG is a venture including Nigerian National Petroleum Corporation and oil majors Royal Dutch Shell, Total and Eni. 

Meanwhile Asian spot liquefied natural gas (LNG) prices continued correcting lower with potentially steeper dips expected ahead amid thin demand from China and India and healthy supply. Recent tender deals seemingly confirmed the bearish tone. Spot prices for August LNG-AS delivery in Asia were assessed at $10 per million British thermal units (Btu), down 10 cents from the previous week. LNG prices may be a shade lower heading into September.

Russia’s Sakhalin II plant sold a tender Aug. 22-loading cargo to a North Asian buyer at an estimated delivered price of $9.90 per mmBtu, market sources said. Earlier this week, Australia’s APLNG plant sold a Aug. 4-loading free-on-board cargo potentially to Shell at an estimated $9.30 per mmBtu. Despite above-average temperatures in Japan, utilities show limited demand for LNG, while in China buyers may be waiting for prices to fall further before wading into the spot market.

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