Nigeria LNG signs long-term contracts for gas supply

Nigeria LNG Ltd. has signed 20-year contracts for gas supply with NNPC Ltd. and other oil companies to supply 1.29 billion standard cubic feet per day in support of its liquefaction plant expansion plans and to support the company's liquefaction facilities.

These agreements, which also include options for extension, involve Shell Nigeria, Aradel Holdings and First E&P. They are expected to reduce Nigeria's long-standing gas shortages upstream while accelerating its energy transition and industrialisation.

The volume will gradually increase over time in order to supply the $10billion Train-7 gas station on Bonny Island, Rivers State. It is now 80% completed.

Bayo Ojulari said that the contracts created opportunities for growth, cooperation, and shared prosperity.

NLNG Managing director Philip Mshelbila said that the deals address persistent gas supply problems caused by pipeline interruptions, such as vandalism and sabotage. They also signalled NLNG’s strategy to diversify its feedgas sources after the divestment by international oil companies of their onshore assets.

NLNG's owners are NNPC Ltd (49%) Shell Gas (25.6%), TotalEnergies (15%) and Eni (10.4%). Reporting by Isaac Anyaogu Editing and proofreading by Mark Potter

(source: Reuters)