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NLNG signs agreement with power firms ‘to supply 1.1m tonnes of gas yearly’

NLNG signs agreement with power firms ‘to supply 1.1m tonnes of gas yearly’
June 09
12:11 2021

The Nigeria Liquified Natural Gas (NLNG) has signed sales and purchase agreements (SPAs) with three local power firms.

Tony Attah, NLNG managing director, announced this during the signing ceremony in Abuja on Tuesday.

President Muhammadu Buhari had launched the ‘Decade of Gas in Nigeria’ on March 29, which is to entirely power the country’s economy with gas by the year 2030.

Buhari said this will set the tone for the development of the gas industry in the next ten years.

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Speaking at the ceremony, Attah said the agreements are expected to boost gas supply to power, industries, and domestic use.

“Our commitment, as a corporate entity, to unlocking gas utilization is now backed by the execution of Sales and Purchase Agreements (SPAs) to supply 1.1 Million Tonnes Per Annum (MTPA) of LNG on DES basis to Asiko Power Limited, Bridport Energy Limited, and Gas-Plus Synergy Limited,” he said.

“The SPAs will facilitate the project execution and development of infrastructure led by off-takers to aid LNG delivery into the domestic market.

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“The execution of these SPAs follows a Domestic LNG (DLNG) Workshop held in November 2019 to stress test the delivery model with industry stakeholders and a series of engagements to identify suitable actors to co-create the initiative and stimulate market interest for potential off-takers.

“With Nigeria’s enormous gas reserves, I am not in doubt that with the right drive from the government and the support of corporate organizations, we as a nation can stand with our head held high to be counted among major players.

“We believe this will be the decade for us to leverage on our gas reserves to accelerate our power generation solutions through Gas-to-Power projects.

“It will be the decade when as a nation we stop reporting deaths from pollution through the use of wood and solid fuels as domestic energy sources. And it will be the decade for empowering local SMEs to take advantage of the various investment opportunities that the Decade of Gas will attract.”

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Attah also said NLNG’s revenue generation since it started operation in 1999 has exceeded $110 billion.

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