The Nigeria LNG Limited (NLNG) has signed sales and purchase agreements (SPAs) for the domestic supply of 1.1 million tonnes per annum of liquefied natural gas.
The move is in line with the company’s commitment to support the Federal Government’s decade of gas initiative.
Speaking at the announcement of the agreement held in Abuja on Tuesday, MD/CEO of NLNG Tony Attah said, “Ladies and gentlemen, it is my pleasure, to welcome you and 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, Bridport 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.”
Attah congratulated the NLNG board of directors, shareholders, Department of Petroleum Resources (DPR), and other stakeholders “for this demonstration of faith in the Decade of Gas vision, and commitment to the actualization of that vision.”
“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.
“In addition to the Domestic LNG Scheme, we have the ongoing Train 7 project with capacity to attract about $10bn in foreign direct investment. We are also looking to expand the LPG value chain by increasing our supply to the domestic market, guaranteeing LPG supply and enhancing its affordability, and enabling the development of a value network for a sustainable ecosystem,” he added.
