Barclays Capital said today it has entered a multi-year Liquefied Natural Gas (LNG) supply, marketing and optimization arrangement with ENI USA Gas Marketing.
The agreement marks the continued growth of Barclays Capital LNG Services, created to provide tailored solutions for clients in the expanding LNG industry.
ENI USA Gas Marketing has significant capacity and storage rights at Cameron LNG Terminal in Hackberry, Louisiana, and under a gas marketing and optimization arrangement between the parties, Barclays Capital will market gas supplied via this capacity for delivery downstream.
Barclays Capital will also have the right to supply LNG to ENI at Cameron.
Barclays Capital has been active in the physical US natural gas markets since 2004 and has substantial expertise in optimization and price risk management in these markets.
The transaction highlights Barclays Capital’s strengths in the North American gas markets and its innovative approach in partnering with clients to achieve their global strategic objectives in the LNG market.
The deal takes advantage of ENI’s market leadership in the upstream and mid-stream LNG markets globally, and facilitates the continued build-out of ENI’s own North American natural gas business.
“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, Head of Gas & Power Trading for North America for Barclays Capital.
“ENI is internationally recognized as a leader in oil and gas, and we are pleased to be working with them as they expand their LNG presence in the US market.”
Barclays Capital LNG Services was launched in December 2009 to act as a service provider for the LNG industry, with solutions including access to liquidity and markets, risk management, and credit and risk intermediation.
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Source: Barclays Capital, August 10, 2010;