Galp has an active NG/LNG supply and trading business. Currently, Galp's NG and LNG supplies are sourced mainly through long-term contracts established with Sonatrach in Algeria and LNG in Nigeria. These represented about 88% of the Company's supply sources in 2021.
In parallel, Galp also explores other sources of supply, namely the Spanish and French wholesale markets. The remaining needs are covered through spot market operations.
Galp and Sonatrach signed a new agreement in 2019 under which Galp will continue to source natural gas from Algeria, through the Medgas pipeline to Iberia. Galp has secured 1 bcm (c.12 TWh) per year for a 5-year period.
In 2020, Galp signed a Sales and Purchase Agreement (SPA) with Nigeria LNG Limited for the supply of 1 mtpa (c.16 TWh) of LNG over a period of 10 years.
Aiming at diversifying and increasing the competitiveness of its long-term sourcing basket, Galp signed an agreement with Venture Global LNG for the acquisition of 1 mtpa (c.16 TWh) from the LNG export terminal in Calcasieu Pass, U.S.A., over a period of 20 years, starting in 2023. At the end of 2020, Galp agreed to hire an LNG transport vessel from Pan Ocean Co., Ltd for an initial period of 5 years, to support the transportation of LNG from Venture Global LNG.
The natural gas resulting from our sourcing activities is also channelled internally to our Commercial business and auto consumptions in our refinery, and externally to trading activities and electro producers. The volumes of NG/LNG sold via trading were entirely via network trading.
Additionally, Galp is actively working to explore all options for the sale of its associated gas produced in its Brazilian operations. Following the new framework for the natural gas market liberalisation in Brazil, Galp has established a series of gas commercialisation contracts with a start date of January 1, 2022. This has opened marketing opportunities for Galp, allowing the Company to expand its presence along the gas value chain, targeting new clients and creating new business opportunities.
In 2021 year end, Galp has entered into an agreement with Companhia de Gás da Bahia (Bahiagás) to sell a part of its Brazilian natural gas production. We also secured the offtake of Repsol Sinopec’s natural gas production from Sapinhoá Norte, broadening the Company’s sourcing alternatives in Brazil.
In addition, Galp signed agreements with Petrobras and Transportadora Associada de Gás to ensure access to the processing and transportation infrastructures, respectively.