February 19, 2014 / 8:02 PM / 4 years ago

Portugal's Galp tenders to sell 30 Nigeria LNG cargoes

LONDON, Feb 19 (Reuters) - Portugal’s Galp Energia has issued a tender to sell up to 30 liquefied natural gas (LNG) cargoes from Nigeria over a five-year period, with the first cargoes loading in October 2015, traders said.

The tender, which was issued this week, closes in March, and stipulates a minimum bid price of 10.5 percent of Brent crude oil prices, traders with knowledge of the details said.

That works out to a floor price of $11.50 per million British thermal units (mmBtu), compared with global spot LNG prices currently trading at $20.50/mmBtu.

According to the tender document, Galp is offering to sell 4-6 cargoes per year from Nigeria’s Bonny Island liquefaction plant, where it owns export capacity, traders said.

Galp is offering to sell the cargoes at the port, or potentially to deliver the volumes to the customer, in which case its cutoff minimum price would likely be higher. (Reporting by Oleg Vukmanovic, editing by David Evans)

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