…leveraging economies of scale, shared risks, opportunities key to achieving decade of gas vision- Ojulari, GCEO NNPCL
Oredola Adeola
NLNG has signed long-term Gas Supply Agreements with the Nigerian National Petroleum Company Limited (NNPC Ltd.) and five other third-party upstream gas suppliers to deliver up to a total of 1,290 million standard cubic feet of gas per day (mmscf/d) or 13.3 bcm/yr as feedgas to its Bonny plant.
The NLNG signed the 20-year agreements, with extension options, with NNPC and other suppliers at the NNPC Towers in Abuja on Friday
The third-party gas suppliers are Oando Group; Aradel Holdings Amni International Petroleum Development Company Limited; Shell Nigeria Gas Solutions Limited.; Sunlink Energies and Resources Limited; First Exploration & Petroleum Development Company Limited; SNEPCo; and NNPC Gas Marketing Limited; NNPC E&P Limited.
Advisors Reports gathered that the long-term Gas Supply Agreements (GSAs) 1.29 billion standard cubic feet per day (bscf/d) volumes is expected to be gradually scaled up over years.
The agreements, according to the parties, is aimed at bridging the prolonged shortfall in upstream gas availability, marks a major boost for Nigeria’s energy transition agenda and the Federal Government’s gas reforms aimed at strengthening the nation’s economic prosperity and energy security.
Engr. Bayo Ojulari, Group Chief Executive Officer of NNPC Ltd., while speaking at the signing ceremony, commended NLNG’s shareholders and the Federal Government for their long-term commitment to value delivery despite the challenges faced over the years.
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 risk and opportunities for us to attain President Tinubu’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 realisation of the Presidential Executive Orders for the industry, pledging to work with partners to unlock opportunities for collective prosperity, in line with the national gas development targets for incremental production.
NLNG Managing Director, Philip Mshelbila, hailed the GSAs as a game-changer for Nigeria’s gas industry, noting that they will boost domestic production capacity, strengthen supply reliability, and drive the country’s energy security, industrialisation, 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.
According to him, 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.
