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By Ekaterina Kravtsova
LONDON, Dec 12 (Reuters) - Commodities trader Vitol
VITOLV.UL has signed a 10-year deal with Nigeria Liquefied
Natural Gas (NLNG) to buy 500,000 tonnes of LNG per year,
ramping up its long-term presence on the market.
Commodity houses, including Vitol rivals Trafigura
TRAFGF.UL and Gunvor GGL.UL , are increasingly expanding
their traded spot cargo volumes with multi-year LNG deals as a
global push for cleaner energy helps the market grow and mature.
"The agreement underscores NLNG's drive...to deliver LNG on
a global scale in a low carbon world where gas/LNG will continue
to be the preferred complementary energy source alongside
renewables," Vitol said in a statement.
The deal also helps NLNG remarket volumes from existing
production lines at its Bonny Island plant with a number of
contracts due to expire.
Vitol said it would purchase volumes from Trains 1, 2 and 3
of a six-train NLNG production facility on Bonny Island under
the sales and purchase agreement, which was signed on Dec. 11
and will start in October 2021.
NLNG's contracts with Turkey's Botas, Portugal's Galp
Energia GALP.LS , Spain's Naturgy NTGY.MC and France's energy
major Total TOTF.PA for a total of 2.67 million tonnes per
year will expire in 2020 and 2021, according to the
International Group of LNG Importers (GIIGNL).
NLNG has also been looking for buyers for volumes from a
yet-to-be-built Train 7. Vitol will purchase volumes on an delivered-ex-ship basis,
meaning NLNG will provide shipping for the cargoes.
The price of LNG purchased under the deal has not been
disclosed but spot Asian LNG and European gas prices are trading
at their lowest level in at least a decade this winter.
Vitol has also been buying long-term volumes from U.S.
producer Cheniere LNG.A and the trading arm of Russia's
Gazprom, Gazprom Marketing & Trading GAZP.MM , since 2018.