The Nigerian National Petroleum Company Limited (NNPC) and five other upstream gas suppliers have signed 20-year Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet of feed gas per day.
The agreements, which include options for extension, were signed last Friday at the NNPC Towers in Abuja.
Parties to the agreements include NLNG, NNPC, and partners from the SNEPCo-Sunlink HI Project, TEPNG-AMNI JV IMA Project, NNPCL-First E&P JV, SNG-NGML, Oando-NNPC E&P, and the TEPNG JV Ubeta.
The 1.29 billion standard cubic feet per day (bscf/d) of feedgas will be gradually scaled up over time.
According to NNPC, the agreements were signed by NLNG and the following entities: Amni International Petroleum Development Company Limited, Sunlink Energies and Resources Limited, First Exploration & Petroleum Development Company Limited, SNEPCo, NNPC Gas Marketing Limited, NNPC E&P Limited, Shell Nigeria Gas Solutions Limited, Oando Group, and Aradel Holdings.
NLNG stated that these agreements mark a significant boost in feed gas availability, strengthening its capacity to fulfill commercial obligations and aligning with the Federal Government’s Decade of Gas initiative. This initiative places natural gas at the heart of Nigeria’s industrialisation and energy transition agenda.
NLNG’s Managing Director and Chief Executive Officer, Philip Mshelbila, described the development as the result of sustained efforts by shareholders and stakeholders to address persistent gas supply challenges.
He noted that NLNG’s operations in recent years have been hampered by pipeline disruptions, including vandalism and sabotage, which have affected upstream gas availability.
“NLNG recognises the challenges that the consequent insufficiency of gas supply has caused to its long-term buyers, customers, shareholders, and the wider Nigerian economy. With the new GSAs, NLNG is optimistic about a sustainable gas supply for the future. We remain grateful for the continued support of our buyers and stakeholders, and we look forward to a successful future together,” Mshelbila said.
“We could not have achieved this without the deliberate and concerted efforts of our shareholders and stakeholders in Nigeria’s energy sector. These agreements are a turning point in NLNG’s journey, restoring supply reliability and ensuring we remain firmly on the path of growth and expansion.”
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, commended NLNG’s shareholders and the Federal Government for their long-term commitment to value delivery despite industry challenges over the years.
He described the agreements as a significant step toward value creation and sustainable gas supply.
“These GSAs have opened up opportunities for industry growth both locally and internationally. They are built on collaboration, synergies, and shared opportunities. We must leverage economies of scale and share both risks and opportunities to achieve the goals of Mr. President’s Decade of Gas vision,” Ojulari stated.
He also praised the enabling environment and private sector support promoted by President Bola Tinubu.
“It is important to commend the President’s tremendous efforts, including the issuance of Executive Orders aimed at promoting gas development and easing the business environment,” he added.
Ojulari reaffirmed NNPC Ltd’s commitment to implementing the Presidential Executive Orders and pledged to work with partners to unlock industry opportunities and achieve national gas development targets for increased production.
Source: https://energynewsafrica.com
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