From Adanna Nnamani, Abuja
The Nigerian National Petroleum Company Limited (NNPC Ltd) and a consortium of upstream gas suppliers have signed long-term Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet per day (bscf/d) of feedgas.
The 20-year deals, with extension options, were sealed on Friday at the NNPC Towers, Abuja, with Amni International Petroleum Development Company Limited; Sunlink Energies and Resources Limited; First Exploration & Petroleum Development Company Limited; SNEPCo; NNPC Gas Marketing Limited; NNPC E\&P Limited; Shell Nigeria Gas Solutions Limited; Oando Group; and Aradel Holdings.
According to a statement issued by NNPC, the agreements are targeted at bridging the prolonged shortfall in upstream gas availability, while giving a major push to Nigeria’s energy transition drive and the Federal Government’s reforms to boost economic prosperity and energy security.
The statement quoted Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, describing the GSAs 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 Mr President’s Decade of Gas vision,” he said.
Ojulari also commended President Bola Ahmed Tinubu for what he called unprecedented support for the oil and gas sector, particularly through the issuance of Executive Orders targeted at gas development and ease of doing business.
He assured that NNPC Ltd remained committed to accelerating the realisation of the Presidential directives, pledging to work with partners to unlock opportunities in line with the national gas development targets for incremental production.
In his remarks, NLNG Managing Director, Philip Mshelbila, hailed the GSAs as a “game-changer” that would enhance local gas production, improve supply reliability and drive Nigeria’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,” he said.
He stressed that the GSAs would further strengthen feedgas supply to the Bonny Island plant while reinforcing Nigeria’s position in the global energy market.
NLNG is an incorporated joint venture with NNPC Ltd holding 49 per cent, Shell Gas 25.6 per cent, TotalEnergies 15 per cent, and Eni International 10.4 per cent.
