The Nigeria Liquefied Natural Gas NLNG Limited has announced the execution of a Sales and Purchase Agreements (SPAs) to supply 1.1 Million Tonnes Per Annum (MTPA) of LNG on a domestic supply basis.
The agreement is with three Nigerian companies; 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.
Announcing the agreement at a press conference in Abuja Tuesday, Managing Director and Chief Operating Officer, MD/COO NLNG, Mr Tony Attah said the execution of the SPAs followed 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 expresses optimism that “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.”
Attah explained that the government has demonstrated its readiness to take the gas sector to the next level by declaring this decade the 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”, the NLNG boss declared.
He went on “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 also used the opportunity to announce and invite stakeholders to the groundbreaking ceremony of the Train 7 project in Bonny to be held a week later.
He congratulated the Board of Directors, shareholders and other stakeholders of the company for their demonstration of faith in the Decade of Gas vision, and commitment to the actualization of that vision, stressing that the SPAs is a collaborative effort, and required the active participation of all stakeholders for the nation to “reach the promised land and to attain the dream of economic expansion, industrialisation and improved opportunities for all Nigerians, flying on the wings of gas”.
In their separate comments at the occasion, the Chief Executives of the three off-taker companies expressed joy that the SPAs had finally taken off after what they described as a laborious journey.
Managing Director, Asiko Power, Felix Ekundayo described the occasion as momentous saying they had always looked forward to it.
“We are extremely proud to be one of the off-takers,” he stated, saying his company began the move in 2014 when they started to promote domestic LNG.
While expressing gratitude to the NLNG he stated; “It is gratifying that we now have domestic grown solutions to domestic LNG development. I’m glad we have arrived at this level.”
Jamal Akinmade, Managing Director, Bridport Energy who said he started engaging NLNG in 2017 acknowledged that being the first set of off-takers on the agreement has placed “a great degree of responsibilities on us but we will deliver. It’s going to be a smooth bumpy ride,” he declared.
For Dan Etete of Gas Plus, the initiative will assist in addressing environmental problems, cut down on the cost of transportation and enhance rapid growth of industrialisation of the country saying “the era of gas dominance has come to be.”
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