Nigeria gas supply agreements boost energy transition

The Nigerian National Petroleum Company (NNPC) and several upstream gas supply firms have entered into a gas supply agreements (GSAs) with the Nigeria Liquefied Natural Gas (NLNG).

The long-term agreements, which span 20 years with options for extension, are set to deliver 1.29 billion standard cubic feet per day of Feedgas to NLNG.

The signing ceremony, held at the NNPC Towers in Abuja, Nigeria, saw the participation of the Sunlink Energies and Resources, Amni International Petroleum Development Company, First Exploration & Petroleum Development Company, SNEPCo, NNPC Gas Marketing, NNPC E&P, Shell Nigeria Gas Solutions, Oando Group, and Aradel Holdings.

These deals are a strategic move to address the longstanding shortfall in upstream gas availability, aligning with energy transition agenda of Nigeria and the gas reforms of Federal Government, which aim to bolster the nation's economy and energy security.

NNPC group CEO Engr. Bashir Bayo Ojulari said: “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 President’s decade of gas vision.”

NLNG managing director Philip Mshelbila highlighted the GSAs would enhance local gas production capacity, enhance supply reliability, and energy security, industrialisation, and economic growth of the country.

Philip Mshelbila said: "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.”

NLNG is an incorporated joint venture (IJV), owned by NNPC (49%), Shell Gas (25.6%), TotalEnergies (15%), and Eni International (10.4%).

Earlier in March, NNPC began discussions with Dangote Oil Refinery to extend their existing supply contract for naira-based crude oil.

"Nigeria gas supply agreements boost energy transition" was originally created and published by Offshore Technology, a GlobalData owned brand.

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