By Teddy Nwanunobi
The Nigeria LNG Limited (NLNG) has sealed agreements to supply 1.1 million metric tons (MMT) of liquefied natural gas (LNG) yearly, the Managing Director and Chief Executive Officer, Engr. Tony Attah, revealed.
Valuechain reports that the agreements were entered with the trio of Asiko Power Limited, Bridport Energy Limited and Gas-Plus Synergy Limited.
This was geared towards unlocking gas utilisation in the country, Attah said on Tuesday, while announcing the execution of Sales and Purchase Agreements (SPAs) for domestic supply of LNG.
“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.
“Big congratulations to our Board of Directors and shareholders for this demonstration of faith in the Decade of Gas vision, and commitment to the actualisation of that vision,” Attah said.
Earlier, Attah had disclosed that the NLNG has dedicated 450 kilo ton per annum (KTPA) of LPG to the Nigerian market.
“In addition, Nigeria LNG remains a major influencer in the domestic LPG sector. Presently, we have dedicated 450ktpa of LPG to the market, and our focus is to support the use of cleaner energy to protect our citizens and the environment from the hazards posed by other cooking fuels by encouraging the use of cooking gas in Nigeria,” he said.
Attah expressed confidence that Nigeria can stand with its head held high to be counted among major players of gas, given the right drive from the Federal Government.
He added that the next decade would be the decade for empowering local small and medium enterprises (SMEs) to take advantage of the various investment opportunities that the ‘Decade of Gas’ will attract.
“With Nigeria’s enormous gas reserves, I am not in doubt that with the right drive from the government and the support of corporate organisations, 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 stated.
During an interactive session with journalists, Attah explained that the agreements were not a subsidy, but purely “a commercial deal”.
He also explained how the NLNG would be able to cope with the supply.
“It is the harvest price in terms of what they can pay. This is not a subsidy scheme. It’s purely a commercial deal between a willing seller and a willing buyer.
“We have a very robust shipping business. We have 23 ships that have been doing business round the world set for Nigeria.
“The ultimate vision will be to power Africa. But it will be nonsensical, if you are powering Africa, and you haven’t powered your own country.
“We will aim to supply using our existing asset base, and we have reached some agreements around how that will work. Being a relatively new business but more or less a startup for the counter parties, there is quite a lot of scope for collaborating with the best opportunities to ensure that this business survives.
“We will supply this product to the counter parties. It is our responsibility to take it to them,” he added.