Barclays Capital has struck a multi-year liquefied natural gas (LNG) supply, marketing and optimization arrangement with Eni USA Gas Marketing, it said Tuesday.

Eni USA Gas Marketing has significant capacity and storage rights at the Cameron LNG Terminal in Hackberry, LA, and under a gas marketing and optimization arrangement between the parties, Barclays said. The firm will market gas supplied via this capacity for delivery downstream and will also have the right to supply LNG to Eni at Cameron.

"This transaction demonstrates how Barclays Capital's active participation in the physical gas and LNG markets can generate material value for our clients by providing complementary transactions," said Henry Weitzner, Barclays head of North American gas and power trading.

Barclays has been active in the physical U.S. natural gas markets since 2004 and has expertise in optimization and price risk management. The Eni agreement marks the continued growth of Barclays Capital LNG Services, which was launched in December to offer access to liquidity and markets, risk management and credit and risk intermediation for the LNG industry. At the time an agreement was struck for Barclays to market Excelerate Energy LLC's LNG cargoes arriving at its Northeast Gateway deepwater port (see Daily GPI, Dec. 3, 2009).

"The deal takes advantage of Eni's market leadership in the upstream and midstream LNG markets globally and facilitates the continued build-out of Eni's own North American natural gas business," Barclays said.

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