NNPC, suppliers sign 1.29bscf/d feedgas supply agreements with NLNG

The Nigerian National Petroleum Company (NNPC) Limited and several upstream gas suppliers have signed long-term gas supply agreements (GSAs) with the Nigeria LNG Limited (NLNG) to deliver 1.29 billion standard cubic feet per day (bscf/d) of feedgas.

In a statement, NNPC said the 20-year agreements, with extension options, were signed at the NNPC Towers in Abuja on Friday.

The statement noted that the agreements were signed by the NLNG, Amni International Petroleum Development Company Limited, Sunlink Energies and Resources Limited, and First Exploration & Petroleum Development Company Limited.

Other partners, NNPC said, are Shell Nigeria Exploration and Production Company (SNEPCo), NNPC Gas Marketing Limited, NNPC Exploration & Production Limited, Shell Nigeria Gas Solutions Limited, Oando Group, and Aradel Holdings.

“The agreements, aimed at bridging the prolonged shortfall in upstream gas availability, mark 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,” the oil firm said.

Speaking at the signing ceremony, Bayo Ojulari, NNPC’s group chief executive officer (GCEO), commended NLNG’s shareholders and the federal government for their sustained commitment to value delivery despite the challenges encountered over the years.

Ojulari described the agreements as a significant milestone in driving value creation and ensuring a 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,” the GCEO said.

“We need to leverage economies of scale, share risks and opportunities for us to attain Mr. President’s Decade of Gas vision.”

He also lauded President Bola Tinubu for fostering an enabling environment and encouraging private sector support.

“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,” Ojulari added.

The GCEO reaffirmed the company’s commitment to fast-tracking the implementation of the presidential executive orders for the industry.

Ojulari further pledged to collaborate with partners to unlock opportunities for shared prosperity, in alignment with national gas development targets for increased production.

In his remarks, Philip Mshelbila, NLNG managing director, described the GSAs as a game-changer for Nigeria’s gas industry.

Mshelbila said they will enhance local gas production capacity, strengthen supply reliability, and support the nation’s energy security, industrialisation goals, and overall 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,” he said.

“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 said the new GSAs reinforce Nigeria’s role in the global energy market while securing feed gas supply to the Bonny Island plant and supporting the company’s expansion drive.