NNPC Ltd and five upstream gas suppliers signed long-term Gas Supply Agreements with NLNG to deliver 1.29 billion standard cubic feet of feedgas per day.
NLNG and NNPC announced on Friday that the agreements, which include extension options, were signed with SNEPCO-Sunlink HI, TEPNG AMNI JV IMA, NNPCL-First E&P JV, SNG NGML, Oando-NNPC E&P, and TEPNG JV Ubeta.
NLNG will gradually scale up the 1.29 bscf/d feedgas supply over time.
NNPC confirmed that NLNG and companies including Amni International, Sunlink Energies, First E&P, SNEPCo, NNPC Gas Marketing, NNPC E&P, Shell Nigeria Gas Solutions, Oando Group, and Aradel Holdings signed the 20-year agreements with extension options at NNPC Towers in Abuja.
The agreements aim to address the prolonged shortfall in upstream gas supply while supporting Nigeria’s energy transition agenda and the Federal Government’s gas reforms to enhance economic prosperity and energy security.
NLNG stated that the agreements will significantly increase feedgas availability, strengthen its ability to meet commercial obligations, and align with the Federal Government’s Decade of Gas initiative that prioritizes natural gas for industrialization and energy transition.
NLNG’s MD/CEO, Philip Mshelbila, said the agreements reflect sustained efforts by shareholders and stakeholders to overcome long-standing gas supply challenges.
He explained that pipeline disruptions, including vandalism and sabotage, have significantly constrained upstream gas availability and disrupted NLNG’s operations in recent years.
He acknowledged the strain insufficient gas supply placed on NLNG’s buyers, customers, shareholders, and the wider economy but expressed optimism that the new GSAs will secure sustainable supply and strengthen partnerships moving forward.
Mshelbila credited shareholders and stakeholders for enabling the agreements, calling them a turning point that restores supply reliability and reinforces NLNG’s path to growth and expansion.
NNPC’s Group Chief Executive Officer, Bayo Ojulari, praised NLNG’s shareholders and the Federal Government for their long-term commitment to value delivery despite years of challenges.
He described the agreements as a decisive step for creating value and ensuring a sustainable gas supply.
Ojulari highlighted that the GSAs open opportunities for both local and international industry growth through collaboration, synergies, and shared risks, in line with the Decade of Gas vision.
He also commended President Bola Tinubu for fostering an enabling environment and supporting the private sector through executive orders on gas development and ease of doing business.
Ojulari reaffirmed NNPC Ltd’s readiness to accelerate implementation of the Presidential Executive Orders and pledged to work with partners to unlock opportunities for shared prosperity under national gas development goals.
source: punchng.com
African Energy Council