Another “milestone” has been achieved in the President Bola Ahmed Tinubu’s energy agenda, Olu Verheijen, Special Adviser to the President on Energy, said.
Last week, the Nigeria Liquefied Natural Gas Limited (NLNG) signed a “20-year” Gas Supply Agreements with six major third-party suppliers.
The move secures “up to 1.29 bscf of feedgas”.
These Gas Supply Agreements (GSAs) will “guarantee stable gas supply to NLNG, reversing years of decline”, Verheijen said.
Via X, Olu Verheijen said: “Last week marked another milestone in President @officialABAT Tinubu’s energy agenda.
“@officialnlng signed 20-year Gas Supply Agreements with six major third-party suppliers, securing up to 1.29 bscf of feedgas.
“These GSAs will:
• Guarantee stable gas supply to NLNG, reversing years of decline
• Unlock billions of dollars in delayed gas investments
“Made possible by 2024 presidential energy directives, now embedded in tax law, and a new competitive pricing regime, the new GSAs will reinforce the focus on Nigeria’s abundant Non-Associated Gas (NAG) reserves.
“The Decade of Gas is firmly on track, aligned with the Renewed Hope Agenda’s energy sufficiency ambition. Expect more milestones ahead as the reforms deepen.”
Making the announcement on the signing of the agreements, NLNG posted on X: “NLNG has signed landmark long-term Gas Supply Agreements (GSAs) with six third-party suppliers to deliver up to a total of 1,290 million standard cubic feet of gas per day (mmscf/d) or 13.3 bcm/yr to its Bonny Plant. The volumes will be gradually scaled up over a period of time.
“The suppliers are:
• SNEPCO–SUNLINK HI Project
• TEPNG–AMNI JV IMA Project
• NNPCL–First E&P JV
• SNG–NGML
• OANDO–NNPC E&P
• TEPNG JV Ubeta
“NLNG MD/CEO, Philip Mshelbila, said:“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.”
“NNPC GCEO, Bayo Ojulari, added:“When NLNG started, it was premised on associated gas — accidents of oil exploration, not gas exploration. As associated gas declined and pipeline
“disruptions grew, sustaining supply became difficult. At the same time, if you recall, there were third parties that had ready gas, but the structure and framework to bring that gas to bear, to maximise capacity utilisation and the profitability of NLNG, suffered for quite some time.
“And that is why this particular agreement is a dream come true for Nigeria and for NLNG. It is a proud moment for the founding partners- the shareholders – for their open arms in really bringing in other parties.”
“This development marks a historic shift. The bold diversification is about securing continuity and supporting NLNG’s expansion, as well as advancing the Federal Government’s Decade of Gas agenda.”
