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Nigeria to supply more LNG to UK

    The UK is set to receive its second and third shipments of Nigerian
liquefied natural gas over the next two weeks as the country's NBP gas hub has
emerged as one of the higher priced markets in Europe.

     In addition, port data shows LNG receipts into UK terminals are gathering
momentum following a period of falling deliveries into Milford Haven's South
Hook and Dragon terminals. 

     A Gaz de France LNG cargo aboard the Gaselys tanker berthed Monday at
National Grid's Grain port, preceded by one BP and another Qatari delivery the
week before. 

     BP's 155,000 cubic meter capacity British Diamond LNG tanker berthed at
Grain on Saturday, while Qatar's 210,000 cu m Al Oraiq offloaded June 24.

     Sendout from Grain has kept steady pace against sagging and erratic flows
coming out of South Hook and Dragon over the past two weeks.

     But that appears likely to change soon, given that a number of Nigerian
shipments are headed to Dragon over the next few weeks.

     Sources said the arrival of Nigeria's LNG Finima tanker June 3 marked the
first-ever shipment from that country. And now the arrival of two more tankers
from Nigeria LNG's Bonny Island liqeufaction plant may signal an emerging
trend, sources said.

     Nigeria's LNG Rivers, which can carry up to 137,231 cu m, is expected to
berth Tuesday at Dragon. Another Nigerian cargo again aboard the LNG Finima
returns to offload at Dragon on July 4, according to port data.

     The trend in UK-bound Nigerian shipments comes after operator Nigeria
LNG began ramping up production at its Bonny Island liquefaction plant,
although a force majeure at the facility remains in effect. 

     Bonny Island's liquefaction capacity reportedly dropped to 50% last year,
but is now increasing to between 70% and 80% of capacity.

     NLNG first declared force majeure on LNG shipments in November 2008
because of the closure of the Soku gas plant. As a result, NLNG had to forego
production for 113 LNG cargoes and $2 billion in revenue last year, a company
official said.

     As the highest-priced market in the Atlantic basin, the UK is attracting
cargoes from as far afield as the Middle East and North Africa, which may also
explain the flurry of Nigerian cargoes.