Nigeria: NLNG joins hand with NNPC for gas development projects

An USD 2.5 billion pre-payment agreement has been signed between the Nigerian National Petroleum Corporation and Nigeria Liquefied Natural Gas. The objective is to develop upstream gas development projects to supply gas to Nigeria Liquefied Natural Gas (NLNG) Trains 1 to 7.

The new deal is set to solve the issues around gas supply to the Trains. According to the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Alhaji Mele Kyari, the new deal is now urging the shareholders to accelerate the production capacity of the company beyond the upcoming Train 7 facility.

Alhaji Mele Kyari believed that there was a requirement to fast-track action on the process of bringing more Trains on stream. He urged that the pre-payment gas supply agreement was a milestone which aligned with the Federal Government’s aspirations of monetizing the nation’s enormous gas resources, protecting the Federation’s investment in NLNG, ensuring full capacity utilization (22mtpa LNG and 5mtpa NGLs) of Trains 1 to 6 plants, generating employment, and providing new vistas of growth opportunities in the nation’s LNG sector.

The signing of the gas supply pre-payment agreement bettwne NNPC and NLNG was a significant step towards ensuring the company’s business sustainability and competitiveness, as said by Tony Attah, the Managing Director of NLNG.

NNPC had acquired an additional 1183km2 of 3D seismic data over highly prospective areas of Gongola Basin to evaluate the full hydrocarbon potential of the Basin. It had also discovered hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the North-Eastern part of the country.