The Nigerian National Petroleum Company Limited (NNPC Ltd.) and several upstream gas suppliers have signed long-term Gas Supply Agreements (GSAs) with the Nigeria Liquefied Natural Gas Limited (NLNG) to deliver 1.29 billion standard cubic feet per day (bscf/d) of Feedgas.
NLNG and Amni International Petroleum Development Company Limited, Sunlink Energies and Resources Limited and First Exploration & Petroleum Development Company Limited signed the 20-year agreements, with extension options at the NNPC Towers in Abuja on Friday.
According to a statement from the company, other companies include: SNEPCo, NNPC Gas Marketing Limited, NNPC E&P Limited, Shell Nigeria Gas Solutions Limited, Oando Group and Aradel Holdings.
The agreements which aim at bridging the prolonged shortfall in upstream gas availability, mark a major boost for Nigeria’s energy transition agenda.
It will also boost the Federal Government’s gas reforms and strengthen the nation’s economic prosperity and energy security.
At the signing ceremony, the Group Chief Executive Officer of NNPC Ltd., Bashir Bayo Ojulari, commended NLNG’s shareholders and the Federal Government for their long-term commitment to value delivery despite the challenges faced over the years.
Giant step for value creation
He described the agreements as a giant step towards value creation and sustainable gas supply.
“These GSAs have opened up opportunities for the growth of our industry, both for local and international development.
“They’re hinged on collaboration, synergies and opportunities.
“We need to leverage economies of scale, share risks and opportunities for us to attain Mr. President’s Decade of Gas vision,” he said.
Ojulari lauded the enabling environment and private sector support fostered 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.
The GCEO reaffirmed NNPC Ltd.’s readiness to accelerate the realization of the Presidential Executive Orders for the industry.
He also pledged to work with partners to unlock opportunities for collective prosperity, in line with the national gas development targets for incremental production.
GSAs as game changer
In his remarks, NLNG Managing Director, Philip Mshelbila, hailed the GSAs as a game-changer for Nigeria’s gas industry.
According to him, the GSAs will enhance local gas production capacity, improve supply reliability, and advance the nation’s energy security, industrialization aspirations, and economic growth.
“We could not have achieved this sooner without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria.
These agreements are a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila noted.
He said the new GSAs reinforce Nigeria’s role in the global energy market while strengthening feed gas supply to the Bonny Island plant and supporting the company’s expansion drive.
The Nigeria LNG Limited (NLNG) is an incorporated joint venture (IJV), with NNPC Ltd. holding 49%, Shell Gas 25.6%, TotalEnergies 15%, and Eni International 10.4%.
