NLNG Signs 20-Year Gas Supply Agreements With NNPC, Partners
- NLNG has signed long-term Gas Supply Agreements (GSAs) with NNPC Ltd. and several gas providers for the delivery of 1.29 billion standard cubic feet per day of feedgas
- These agreements aim to close the gap in upstream gas supply, supporting Nigeria's energy transformation plan and economic development.
- NLNG's Managing Director, Philip Mshelbila, highlighted the GSAs as a game-changer for the industry, boosting gas supply to Bonny Island
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigeria Liquefied Natural Gas Limited (NLNG) has entered into long-term Gas Supply Agreements (GSAs) with the Nigerian National Petroleum Corporation (NNPC Ltd.) and several upstream gas providers for the delivery of 1.29 billion standard cubic feet per day (bscf/d) of feedgas.
Source: Getty Images
The NLNG, along with 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, signed the 20-year agreements.
These agreements, which include options for extension, were signed at the NNPC Towers in Abuja on Friday.
The agreements, aimed at closing the long-standing gap in upstream gas supply, represent a significant step forward for Nigeria's energy transformation plan and the Federal Government's gas reforms, set to improve the country's energy security and economic development.
Engr. Bashir Ojulari, the Group Chief Executive Officer of NNPC Ltd., spoke at the signing ceremony and praised the Federal Government and NLNG's shareholders for their sustained dedication to value creation despite the difficulties encountered over the years.
He called the deals a huge step toward sustainable gas supply and revenue generation.
“These GSAs have opened up opportunities for the growth of our industry, for both local and international development. They’re hinged on collaboration, synergies, and opportunities. We need to leverage economies of scale, share risks, and seize opportunities for us to attain Mr. President’s Decade of Gas vision,” he said.
Ojulari lauded the enabling environment and private sector support provided by President Bola Ahmed Tinubu. “It is important to commend the President’s tremendous effort that has enabled the business through the issuance of Executive Orders targeted at gas developments and ease of doing business,” he added.
In accordance with the national gas development targets for incremental production, the GCEO emphasized NNPC Ltd.'s willingness to expedite the industry's implementation of the Presidential Executive Orders and committed to collaborating with partners to open doors for shared prosperity.
GSAs would boost local gas production capacity, increase supply reliability, and strengthen the country's energy security, support industrialization goals, and promote economic progress, according to NLNG Managing Director Philip Mshelbila, who praised the GSAs as a game-changer for Nigeria's gas industry.
“We could not have achieved this sooner without the deliberate and concerted efforts of our shareholders and stakeholders in Nigeria's energy industry,” Mshelbila noted.
Source: Getty Images
He stated that in addition to bolstering the feed gas supply to the Bonny Island facility and assisting the company's expansion efforts, the new GSAs also enhance Nigeria's position in the global energy market.
Nigeria LNG Limited (NLNG) is an incorporated joint venture (IJV) with NNPC Ltd. owning 49%, Shell Gas owning 25.6%, TotalEnergies owning 15%, and Eni International owning 10.4%.
Cooking gas prices rise as NLNG vessel arrives Nigeria
Legit.ng reported that cooking gas prices have risen again after moderating for most of July due to supply availability.
Findings by Legit.ng show that the price of 12.5kg of cooking gas refill rose to N14,500 from the N13,000 it sold a few weeks ago.
The price of 1kg of cooking gas rose to N1,200 from N900, and the price of 6kg of cooking increased to N7,200 from N5,100.
Source: Legit.ng
