The Nigeria Liquefied Natural Gas limited says it has concluded the execution of sales and purchase agreements to supply 1.1 million tonnes per annum to boost domestic gas supply in the country.
The Managing Director of the company Mr Tony Attah made this known at the announcement of the agreement at the sidelines of the on going 4th Nigeria International Petroleum Summit ( NIPS) in Abuja.
” it is my pleasure, to welcome you and announce that our commitment, as a corporate entity, to unlocking gas utilisation 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,” he said.
He commended the effort of the NLNG board in demonstration of faith in the Decade of Gas vision, and commitment to the actualisation of that vision.
He congratulated the Department of Petroleum Resources (DPR), that would play a critical role in the implementation of the agreement.
“Congratulations also goes to other stakeholders and corporate entities gathered here today. This is just the beginning, and our individual and collective efforts will be needed to make this journey a success.
“With Nigeria’s enormous gas reserves, I am not in doubt that with the right drive from the government and the support of corporate organizations, we as a nation can stand with our head held high to be counted among major players.
” The government has demonstrated its readiness to take the gas sector to the next level by declaring this decade our nation’s Decade of Gas.
“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,” he said.
Attah noted that in addition to the Domestic LNG Scheme, the ongoing
Train 7 project with capacity to attract about 10billion in foreign
direct investment.
He noted that the company would expand the LPG value chain by increasing our supply to the domestic market, guaranteeing LPG supply and enhancing its afforordability, and enabling the development of a value network for a sustainable ecosystem.
In his remarks, the Chief Operating Officer, Gas Nigerian National Petroleum corporation said the decade of gas had come to stay and all should suppprt it.
” Decade of gas will bring development, Increase food, fertilizer and will enhance the transportation,” he said.
He urged the offtakers to ensure the supply to domestic market and not to export it.
In his remarks, the Managing Director of the Asiko Energy, one of the off takers
Mr Felix Ekundayo said that the company was proud to be part of agreement.
He assured that it would do its best to ensure adequate supply of gas to domestic utilisation saying “We are the domestic solution for tye LNG supply in the country”.
Mr Ken Etete and Mr Jamal Akinde Managing Directors of Gas Plus and Bridport other off takers coroborated Ekundayo’s assertion and pledged total commitment to supply of the product.
