Nigeria LNG pens sales deal with domestic buyers
The international consortium that produces all of Nigeria's LNG has signed sales and purchase agreements with three local companies for the supply of 1.1mn metric tons/year to the domestic market, the Nigerian press has reported.
The deals were signed with Asiko Power, Bridport Energy and Gas-Plus Synergy at a press conference on June 8. NLNG's managing director Tony Attah said the agreements would facilitate the development of infrastructure to supply more LNG to the domestic market.
Nigeria is on a push to expand the role of gas in its economy, in sectors ranging from power generation and petrochemicals to vehicle transport and home cooking. The country has substantial reserves, estimated by BP at 49.3 trillion m3 proven, but it produces under 50bn m3/year.
"With Nigeria's enormous gas reserves, I am not in doubt that with the goodwill of the government and the support of business, we as a nation can stand tall to be counted among the major players," Attah said. "The government has shown that it is ready to take the gas sector to the next level by declaring this decade our country's gas decade." The country's long-awaited Petroleum Industry Bill however, which is intended to attract more investors to the upstream, remains in the legislative doldrums.
NLNG, whose shareholders are NNPC, Shell, Total and Eni, operates Nigeria's only active LNG terminal. Its current capacity is 22mn mt/yr, although the consortium took a final investment decision in December 2019 on adding a seventh train and undertaking other upgrades to raise output to 30mn mt/yr in 2024.