Italian energy concern eni spa agreed to annually purchase


Italian energy concern Eni SpA agreed to annually purchase 2 billion cubic meters of LNG from Nigeria LNG Ltd. for resale to the United States. The gas is to be produced at the Bonny facility in Africa and delivered to the Cameron import terminal in Louisiana. It is expected that deliveries will start in 2012 and last for 20 years at a price of $0.25 per cubic meter. What is the present value (end 2011) of the contract? Assume an annual interest rate of 13.575% and end of year cash flows.

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Business Economics: Italian energy concern eni spa agreed to annually purchase
Reference No:- TGS0988495

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