Nigeria LNG signs long-term agreements to guarantee a supply of gas
Nigeria LNG Ltd. said in a statement that it has signed 20-year gas supply contracts with NNPC Ltd. and other oil companies for the supply of 1.29 billion standard cubic feet per day to support its growth ambitions and liquefaction plants.
Companies like Shell Nigeria, Oando Group (OANDO.LG), opens new tab, Aradel Holdings (ARADEL.LG), opens new tab, and First E&P are also involved in the agreements, which include extension options. It is anticipated that these agreements will help to alleviate long-standing upstream gas shortages while advancing Nigeria’s energy transition and industries.
Over time, the amounts will be progressively increased to fuel the $10 billion Train-7 gas plant, which is currently 80% finished on Bonny Island in Rivers State.
According to Bayo Ojulari, CEO of NNPC Group, the contracts created chances for expansion, cooperation, and mutual success.
The agreements also signaled NLNG’s strategy of diversifying its feedgas sources after a number of foreign oil companies divested their onshore assets, according to NLNG Managing Director Philip Mshelbila. These agreements addressed ongoing gas supply issues brought on by pipeline disruptions, including cases of vandalism and sabotage.
TotalEnergies (TTEF.PA), opens new tab (15%), Shell Gas (25.6%), Eni (ENI.MI), opens new tab (10.4%), and NNPC Ltd. (49%), jointly own NLNG.
