NLNG Secures 20-Year Gas Supply Deals as Train 7 Nears Completion

The Nigerian National Petroleum Company Limited (NNPC Ltd.) and several upstream gas suppliers have signed long-term Gas Supply Agreements (GSAs) with the Nigeria LNG (NLNG) for the delivery of 1.29 billion standard cubic feet per day (bscf/d) of Feedgas.

The NLNG, which has been facing gad supply constraints in recent years, said in June that its $10bn Train-7 gas project was 80 percent completed. 

The 20-year agreements, with extension options, were signed on Friday by the NLNG and 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.

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.

Speaking at the signing ceremony, the Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, commended NLNG’s shareholders and the Federal Government for their long-term commitment to value delivery despite the challenges faced over the years. He described the agreements 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 risks and opportunities for us to attain Mr. President’s Decade of Gas vision,” he said.

Ojulari lauded the enabling environment and private sector support fostered by President Bola Ahmed Tinubu.

“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,” he added.

The new GSAs represent a significant boost to feedgas availability, enhancing NLNG’s capacity to meet its commercial commitments while laying the groundwork for expansion.

NLNG’s Managing Director and Chief Executive Officer, Philip Mshelbila, described the milestone as the culmination of sustained efforts by shareholders and stakeholders to address long-standing gas supply constraints.

He noted that in recent years, NLNG’s operations had been significantly impacted by pipeline disruptions, including vandalism and sabotage, affecting upstream gas availability.

“NLNG recognises the challenges that the consequent insufficiency of gas supply has caused to its long term buyers, customers, shareholders and more widely to the Nigerian economy. With the new GSAs, NLNG is optimistic of sustainable gas supply for the future and remains grateful for the continuing support of its buyers and other stakeholders, and looks forward to a successful future together,” he said.