Repsol YPF and Gas Natural Sign MOU for LNG Macro Project

Repsol YPF and Gas Natural, through their joint venture dedicated to the Liquefied Natural Gas business, have signed a memorandum of understanding with the Nigerian Government for the development of an important LNG project in that country.

This agreement establishes conditions for the eventual construction and operation of an LNG plant in Nigeria, with an initial yearly capacity of 7 million tons, equivalent to 10bcma of natural gas, and for the acquisition and development of gas reserves to feed the plant. This initiative guarantees the long-term supply of gas.

This is one of the most important agreements signed by a Spanish company in the LNG sector, for the volume of gas and the strategic location of the future plant, with respect to gas markets in the Atlantic and Mediterranean basins.

The Nigerian Secretary of State for Petrol Resources, Edmund Daukoru, and the Managing Director of Repsol-Gas Natural LNG, Stream, Carlos Torralba, signed this agreement after having maintained negotiations in the last few months between Stream management and the highest governmental authorities from the Nigerian Federal Republic, and which were initiated after the Nigerian President, H.E. Olusegun Obasanjo visited Spain last September.

Stream is a joint venture between Repsol YPF and Gas Natural, to develop the international LNG business, and as according to the signed LNG contracts it is ranked third in the global LNG market.

So far, Gas Natural has been the largest LNG buyer, and Repsol YPF one of the main importers of crude oil from Nigeria. After this agreement, both companies take a further step forward in relations with this country for being positioned as long term investors in Nigeria, just as the majority of international energy companies see this country as having a solid future in supplying hydrocarbons.

The signing of this agreement reflects the confirmation of the positive results of the Nigerian Government's efforts to endow transparency and stability to their domestic economy, and to create favourable conditions for attracting international investments in Nigeria.

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Posted 10/04/06

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