NLNG Signs Gas Supply Deals with Six Firms to Boost Bonny Plant Operations

NLNG management, alongside its directors and shareholder representatives, signed Gas Supply Agreements (GSAs) with six suppliers for 13.3 bcm/yr of feedgas at the NNPCL headquarters in Abuja on Friday.


NLNG has signed long-term Gas Supply Agreements (GSAs) with six third-party suppliers to strengthen feedgas supply to its Bonny Island plant and support future expansion.


The agreements, announced on Friday, 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. Under the deals, the suppliers will gradually deliver about 1,290 million standard cubic feet per day (mmscf/d), equivalent to 13.3 billion cubic metres (bcm) annually, to NLNG.


The company said the move represents a significant step in addressing long-standing gas supply shortages that have affected its operations in recent years. Pipeline disruptions, vandalism, and sabotage had hampered gas availability, impacting NLNG’s ability to meet contractual obligations to buyers and shareholders.


NLNG’s Managing Director and Chief Executive Officer, Philip Mshelbila, described the agreements as a turning point for the company.


“With the new GSAs, NLNG is optimistic of sustainable gas supply for the future. These agreements restore reliability of supply and ensure we remain firmly on the path of growth and expansion,” he said.


He added that the development also reflects a historic shift in NLNG’s supply structure. Since inception, the company had relied largely on legacy shareholder joint venture affiliates for feedgas. But following the divestment of onshore assets by several international oil companies to non-shareholder entities, NLNG is now sourcing gas from a more diverse pool of suppliers.


The company said the landmark GSAs would not only enhance local gas production capacity but also support Nigeria’s energy security, industrialisation, and economic growth, in line with the Federal Government’s Decade of Gas initiative.


NLNG in a statement signed by its General Manager, External Relations and Sustainable Development, Sophia Horsfall, noted that the agreements were achieved through deliberate and concerted efforts by its shareholders and stakeholders in the energy sector and reaffirmed its commitment to meeting both domestic and international energy demand.


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