NLNG signs 20-year gas supply deals with six third-party firms
Nigeria LNG Limited (NLNG) has signed long-term gas supply agreements (GSAs) with six third-party suppliers in a move to secure feedgas for its operations and support future expansion.
The 20-year contracts, which come with extension options, will deliver about 1,290 million standard cubic feet per day of gas to NLNG’s facilities on Bonny Island, Rivers state.
The agreements were signed with SNEPCO-SUNLINK HI project, TEPNG-AMNI JV IMA project, NNPCL-First E&P JV, SNG-NGML, Oando-NNPC E&P, and TEPNG JV Ubeta.
This was disclosed in a statement signed by Sophia Horsfall, general manager, external relations and sustainable development, on Friday.
In the statement, Philip Mshelbila, managing director and chief executive of NLNG, described the milestone as “a turning point” for the company, noting that it comes after years of disruptions that had constrained supply.
“We could not have achieved this sooner without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria,” 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.”
He added that the GSAs mark a historic shift, as NLNG had relied mainly on legacy shareholder joint venture affiliates for gas since inception.
According to him, with the recent divestments by international oil companies from onshore assets, NLNG is now broadening its sources by procuring feedgas from non-shareholder entities.
The company said the agreements will boost gas availability, strengthen its ability to meet commercial commitments, and align with the federal government’s “Decade of Gas” agenda, which seeks to position natural gas at the heart of Nigeria’s industrialisation and energy transition.
“NLNG recognises the challenges that the consequent insufficiency of gas supply has caused not just to its shareholders but also to its long-term buyers – and more widely to the Nigerian economy,” the firm said.
“With the new GSAs, NLNG is optimistic of sustainable gas supply for the future.”
The company added that the agreements are expected to enhance local production capacity, improve energy security, and support Nigeria’s economic growth.
