The Nigerian National Petroleum Company Limited (NNPC Ltd.) and several upstream gas suppliers have signed long -term gas supply agreements (GSA) with the Nigeria Natural Gas Limited (NLNG) Nigeria for the delivery of 1.29 billion standard cubic feet per day (BSCF/D) of Feedgas.
The 20 -year -old agreements, with extension options, were signed at the NNPC towers in Abuja on Friday by NLNG and AMNI International Petroleum Development Company Limited; Limited solar liaison energies and resources; 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 joining the prolonged deficit in the availability of upstream gas, mark a great impulse for the Nigeria Energy Transition Agenda and the Federal Government’s gas reforms aimed at strengthening the economic prosperity and energy security of the nation.
Speaking at the signature ceremony, the executive director of the NNPC Ltd. group, Eng. Bashir Bayo Ojulari, praised the shareholders of NLNG and the Federal Government for its long -term commitment of the value delivery despite the challenges faced over the years. He described the agreements as a giant step towards the creation of value and the sustainable gas supply.
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“These GSA have opened opportunities for the growth of our industry both for local and international development. They are depending on collaboration, synergies and opportunities. We need to take advantage of economies of scale, share risks and opportunities to achieve the decade of the gas vision of Mr. President,” he said.
Ojulari praised the enabling environment and the support of the private sector promoted by President Bola Ahmed Tinubu.
“It is important to recommend the tremendous effort of the president who has allowed the business through the issuance of executive orders aimed at gas developments and the ease of doing business,” he said.
The GCEO reaffirmed the preparation of NNPC Ltd. to accelerate the realization of the presidential executive orders of the industry, committing to work with partners to unlock opportunities for collective prosperity, in line with the National Gas Development Goals for incremental production.
In his comments, NLNG’s managing director, Philip Mshelbila, who acclaimed the GSA as a change of game for the Nigeria gas industry, said they will improve the local gas production capacity, will improve the reliability of the offer and advance in the energy security of the nation, the aspirations of industrialization and economic growth.
“We could not have achieved this before without the deliberate and concerted efforts of our shareholders and interested parties in the energy industry in Nigeria.
These agreements are a turning point on the NLNG trip, restoring the reliability of the supply and ensuring that we firmly continue in the path of growth and expansion, ”said MSHELBILA.
According to him, the new GSAS reinforces Nigeria’s role in the world energy market while strengthening feedgas to the Bonny Island plant and supports the expansion of the company.
Nigeria Lng Limited (NLNG) is a built -in joint company (IJV), with NNPC LTD Holding 49%, Shell Gas 25.6%, Totalgies 15%and ENI International 10.4%.
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