NLNG To Supply 1.1m Tonnes Of Gas To Domestic Market

NLNG To Supply 1.1m Tonnes Of Gas To Domestic Market
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By Cyril Ogar

The Nigeria Liquefied Natural Gas limited (NLNG) has concluded the Execution of Sales and purchase Agreements (SPAs) to supply 1.1 million tonnes per annum to boost domestic gas supply in the country.

The Managing Director of the company, Mr Tony Attah, made this known at a press conference on the Sales and purchase Agreements at the ongoing 4th Nigeria International Petroleum Summit (NIPS) in Abuja.

According him, Nigeria LNG is respected internationally because of its solid reputation as a Responsible, Trusted and Reliable supplier of LNG.

At the home front, we are distinguished as a development partner with Nigeria’s Government, with our six-train plant generating more than US$110 billion in revenue since it began operation in 1999. 

Nigeria LNG has paid about US$18 billion as dividends to the Federal Government of Nigeria, through the state-owned Nigerian National Petroleum Corporation (NNPC) 49% shareholding and equivalent amount as dividend to the other three shareholders in the same time period.

We have also paid about US$15 billion for feed gas purchases to the Federal Government of Nigeria through its shareholding in NNPC and about USD9 billion in taxes.

In addition, Nigeria LNG remains a major influencer in the domestic LPG sector. Presently, we have dedicated 450ktpa of LPG to the market and our focus is to support the use of cleaner energy to protect our citizens and the environment from the hazards posed by other cooking fuels by encouraging the use of cooking gas in Nigeria.

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The commitment of LNG, 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.

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

The execution of these SPAs follows a Domestic LNG (DLNG) Workshop which was 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, he said.

He commended the effort of the NLNG board in its demonstration of faith in the Decade of Gas vision, and commitment to the actualisation of that vision.He congratulated the Department of Petroleum Resources (DPR), that would play a critical role in the implementation of the agreement.

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

“The government has demonstrated its readiness to take the gas sector to the next level by declaring this decade our nation’s Decade of Gas.“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,” he said.

Attah noted that in addition to the Domestic LNG Scheme, the ongoing Train 7 project with capacity to attract about 10billion dollars in foreign direct investment.He noted that the company would expand the LPG value chain by increasing supply to the domestic market, guaranteeing LPG supply and enhancing its access, and enabling the development of a value network for a sustainable ecosystem.

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in his remarks, the Chief Operating Officer, Gas in the Nigerian National Petroleum Corporation, said the decade of gas had come to stay and all should support it.

”Decade of gas will bring development, increase food, fertilizer and will enhance the transportation,” he said.

He urged the off takers to ensure the supply to domestic market and not to export it.In his remarks, the Managing Director of the Asiko Energy, one of the off takers, Mr Felix Ekundayo, said that the company was proud to be part of agreement.He assured that it would do its best to ensure adequate supply of gas to domestic utilisation, saying “we are the domestic solution for the LNG supply in the country”.

Mr Ken Etete and Mr Jamal Akinde, Managing Directors of Gas Plus and Bridport other off takers, also pledged total commitment to supply of the product.


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