May 26, 2024

NLNG signs SPAs with 3 gas off-takers to distribute 1.1tons of gas locally


NLNG signs SPAs with 3 gas off-takers to distribute 1.1tons of gas locally

NLNG signs SPAs with 3 gas off-takers to distribute 1.1tons of gas locally

Solomon Ezeme

The Nigeria LNG Limited has signed Sales and Purchase Agreements (SPAs) with three off takers with the aim of supplying 1.1 million tonnes of Liquefied Natural Gas, LNG annually to the domestic market. The announcement was made by Tony Attah, Managing Director and Chief Executive Officers, NLNG, at an event held at Transcorp Hilton, Abuja, on Tuesday. 

The SPAs  with Asiko Power Limited, Bridport Energy Limited and Gas-Plus Synergy Limited are part of a first wave of agreements targeted to boost gas supply to power, industries, and domestic use.

According to Attah, “  The agreement signing  will go  down in history as another concrete step that we have taken as Nigeria   LNG   Limited   to   support   the   Federal   Government’s Decade of Gas initiative. 

“This is another clear testament of how we continue to live our vision of being a global LNG company helping to build a better Nigeria. Nigeria   LNG   is   respected   internationally   because   of   its solid reputation as a responsible, trusted and reliable supplier of  Liquefied Natural Gas. 

“ Locally,   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.

He noted that the  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). A sum of    49% shareholding and equivalent amount has been released as dividend to the other three shareholders in the same time period.

He further stated that NLNG  has also paid about   US$15   billion   for   feed   gas   purchases   to   the   Federal Government of Nigeria through its shareholding in NNPC and about USD 9 billion in taxes.

The NLNG MD said,  the firm remains   a   major   influencer   in   the domestic LPG sector, adding that  NLNG has dedicated 450ktpa of LPG   to   the   market.

He said, “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.

“I am pleased to announce  that   our   commitment,   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, Brid port 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. 

 “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. 

The NLNG boss noted that as part of his company’s domestic LNG Scheme, its ongoing Train 7 project will attract about $10bn in foreign direct investment. He also noted that NLNG is also looking to expand the LPG value chain   by   increasing  its  supply   to   the   domestic   market, guaranteeing LPG  supply and  enhancing  its affordability, and enabling the development of a value network for a sustainable ecosystem.

The representatives of the three off-takers, after signing  the agreement disclosed that new initiative would revolutionize the gas supply market in the country.

Leave a Reply

Your email address will not be published. Required fields are marked *