NNPC, others ink gas supply agreements with NLN
The Nigerian National Petroleum Company Limited, along with five other gas producers in the upstream sector, has secured long-term Gas Supply Agreements with Nigeria Liquefied Natural Gas Limited for the delivery of 1.29 billion standard cubic feet of feedgas each day.On Friday, NLNG and NNPC separately confirmed that the agreements, which include options for renewal, were finalized with these partners: the SNEPCO-Sunlink HI project, the TEPNG-AMNI JV IMA project, the 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) feedgas supplied to NLNG will increase gradually over time.
According to NNPC, “The 20-year agreements, with options for extension, were signed on Friday at the NNPC Towers in Abuja by NLNG and 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.”
These agreements aim to resolve the ongoing shortfall in upstream gas supply, significantly enhancing Nigeria’s energy transition efforts and supporting the Federal Government’s gas reforms, which are intended to bolster economic growth and energy security.
NLNG mentioned that these arrangements will improve the availability of feedgas, allowing the company to fulfill its commercial obligations while furthering the Federal Government’s Decade of Gas initiative, which emphasizes the importance of natural gas in industrialization and the national energy transition.
In a statement regarding the agreements, Philip Mshelbila, NLNG’s Managing Director and Chief Executive Officer, described the achievement as the outcome of persistent collaboration among shareholders and stakeholders to address long-standing issues with gas supply.
He pointed out that NLNG’s operations have been significantly impacted in recent years by disruptions in pipelines due to vandalism and sabotage, which have limited the supply of upstream gas.
“NLNG understands the difficulties that the resulting lack of gas supply has created for its long-term buyers, customers, shareholders, and, more broadly, the Nigerian economy. With the new GSAs, NLNG is hopeful for a stable gas supply in the future and is thankful for the ongoing support of its buyers and other stakeholders, looking forward to a prosperous future together.
“We would not have reached this point without the intentional and collective efforts of our shareholders and stakeholders within Nigeria’s energy sector. These agreements represent a pivotal moment in NLNG’s development, restoring supply reliability and ensuring we continue on our growth trajectory,” stated Mshelbila.
Bayo Ojulari, NNPC Group Chief Executive Officer, commended the shareholders of NLNG and the Federal Government for their enduring commitment to creating value despite numerous challenges over the years.
He referred to the agreements as a significant achievement for value generation and ensuring a sustainable gas supply.
“These GSAs have created pathways for the advancement of our industry for both local and international development. They are based on collaboration, synergies, and opportunities. We must harness economies of scale and share both risks and opportunities to realize the vision of Mr. President’s Decade of Gas,” he remarked.
Ojulari also praised the supportive environment and involvement from the private sector encouraged by President Bola Tinubu’s administration.
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