French-based Total is set to expand its liquefied natural gas (LNG) operations in North America by the end of the decade after signing a 20-year supply agreement with Nigeria LNG Ltd. The sale and purchase agreement, to begin in 2007, would supply subsidiary Total Gas & Power Ltd. with 1.3 Bcf/year of LNG for market expansion in the Western Hemisphere.

“This agreement marks an important step in developing Total’s downstream LNG activities in the Atlantic Basin,” said Yves-Louis Darricarrere, president of Total Gas and Power. Along with North America, Total would deliver LNG to European markets.

Production will be delivered from Nigeria’s Bonny LNG plant. With three trains in operation, two trains under construction and one additional train under development, the venture is 15% owned by Total; other investors include Nigerian National Petroleum, Royal Dutch/Shell and ENI.

Total has been growing its visibility in North American gas markets mostly through offshore activities in the past several years. Last month, subsidiary Total E&P USA Inc. was the high bidder on 18 deepwater exploration blocks in the Minerals Management Service’s Gulf of Mexico lease sale 187.

The blocks, which would be 100% operated by Total, are located in the Keathley Canyon area of the western GOM, covering an area of 259 square kilometers. They are situated in water depths of approximately 2,100 meters.

In 2002, Total’s upstream production increased 10%, to 2.4 MMboe/d, supported by proven reserves of 11.2 billion boe, and a portfolio of assets distributed evenly among the world’s main oil and gas producing regions. Its main production is in the North Sea, Africa and the Middle East, followed by Southeast Asia and Latin America.

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