NLNG Secures New Gas Supply Deals with Six Partners to Strengthen Bonny Plant Operations
Kathy Kyari
Nigeria LNG Limited (NLNG) has signed long-term Gas Supply Agreements (GSAs) with six third-party gas suppliers in a move aimed at boosting feedgas availability for its existing trains on Bonny Island and supporting future expansion.
The agreements, which include options for extension, 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 deliver an estimated 1,290 million standard cubic feet per day (mmscf/d), equivalent to 13.3 billion cubic metres (bcm) per year of feedgas, with volumes to be gradually scaled up.
The development represents a major boost to gas availability, strengthening NLNG’s capacity to meet its commercial obligations and laying the foundation for further growth. It also aligns with the Federal Government’s Decade of Gas initiative, which prioritises natural gas as a driver of Nigeria’s industrialisation and energy transition.
NLNG’s Managing Director and Chief Executive Officer, Philip Mshelbila, described the signing as the culmination of sustained efforts to resolve long-standing gas supply challenges that have hindered operations.
“NLNG recognises the challenges that the consequent insufficiency of gas supply has caused to its long term buyers, customers, shareholders and more widely to the Nigerian economy. With the new GSAs, NLNG is optimistic of sustainable gas supply for the future and remains grateful for the continuing support of its buyers and other stakeholders, and looks forward to a successful future together.
“We could not have achieved this without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria. These agreements are a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila said.
He added that the agreements mark a historic shift for NLNG, which since inception had depended largely on legacy shareholder joint venture affiliates for gas supply.
Following recent divestments of onshore assets by several International Oil Companies (IOCs) to non-shareholder entities, the company is now sourcing feedgas from a wider pool of third-party suppliers to sustain production of both Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs).
Industry stakeholders view the GSAs as a game-changer, enhancing local gas production capacity, improving supply reliability, and bolstering Nigeria’s energy security, industrialisation goals, and economic growth.
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