The Nigerian Liquefied Natural Gas (NLNG) Limited has confirmed it will be going ahead with its plan of supplying 1.1 million tonnes of liquefied natural gas LNG to the Nigerian gas market as it hopes to deepen its involvement in the growth of domestic gas usage in the country.
This was revealed by the Manager of Common Facilities Assets of the NLNG, Mr. Lateef Biobaku, during a recent panel session at an oil and gas conference in Lagos.
According to a report by Thisday, the NLNG, in partnership with three major players in the industry, Asiko Power Limited, Bridport Energy Limited, and Gas-Plus Synergy Limited, had earlier signed a Sales and Purchase Agreement (SPA) agreement in 2021 as the three companies were eligible to become the off-takers of the deal.
In a bid to bring the project to fruition, the eligible companies are currently setting up infrastructure that would carry the full product from the NLNG in Apapa and Lekki Free Zone, Lagos as they prepare to receive the product from the NLNG.
While giving more insight on the agreement, the immediate past Managing director of the NLNG, Mr. Tony Attah, confirmed that for a start, the initial supply volume which would be supplied to the three approved off-takers would be 1.1 million tonnes per annum (mtpa).
Speaking further, Attah explained that the SPA agreement with the three off-takers was initiated during a Domestic LNG (DLNG) workshop held in November 2019 aimed at conducting a stress test on the delivery model of the product with other industry stakeholders.
“It is my pleasure to announce that our commitment to unlocking gas utilisation is now backed by the execution of Sales and Purchase Agreements to supply 1.1 million tonnes per annum 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,” Attah had said.
Speaking further on the project, Biobaku said the company remained committed to delivering LNG to the Nigerian market despite the delay in the supply schedule. He mentioned the challenges associated with the importation of steel as part of the issues faced by the industry which has caused the delay in executing the project.
To further give more support to the company’s will to drive the supply of LNG across the country, Biobaky added that the company processing plant in Rivers state currently has a six-train LNG processing plant in Bonny Island with a production capacity of 22 million tones per annum (22mtpa) and 5mtpa of Natural Gas Liquids (NGLs).
NLNG is also planning to add one more train to the lot as it plans to build the seventh train capable of raising its LNG production capacity to 30mtpa.