NLNG signs gas delivery agreements with power plants

09 Jun NLNG signs gas delivery agreements with power plants

The Nigeria LNG Limited, on Tuesday, signed Sales and Purchase Agreements to supply liquefied natural gas to three power firms in Nigeria – Asiko Power Limited, Bridport Energy Limited and Gas-Plus Synergy Limited.

At the signing ceremony in Abuja, the Managing Director, NLNG, Tony Attah, also announced that the gas company had generated over $110bn in revenues to the Federal Government since it started operation in 1999.

He said, “It is my pleasure to announce that our commitment to unlocking gas utilisation is now backed by the execution of Sales and Purchase Agreements to supply 1.1 million tonnes per annum of LNG on DES basis to the three forms.

“The SPAs will facilitate the project execution and development of infrastructure led by off-takers to aid LNG delivery into the domestic market.”

Attah said the execution of the SPAs followed a domestic LNG workshop, which was held in November 2019 to carry out a stress test on the delivery model with industry stakeholders.

He said, “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.”

Also speaking at the event, the Managing Director of the Nigerian LNG, Tony Attah, said energy demand would grow by more than 30 per cent, while the world’s population would rise by two billion by 2050.

According to him, the company has been a receptacle for gas to be aggregated upstream and has done a lot beyond the monetisation of the product, with massive reduction in operational gas flaring by more than 65 per cent, way down to 12 per cent.

He said that Nigeria has been largely heavy on the export business that people have criticised the operations of the NLNG, stressing that today, NLNG is a leader in terms of LPG.

“Last year we delivered more than 370,000 tonnes, which is almost 40 per cent of the one billion tonnes that was consumed for the first time in terms of LPG. We then went to the board to say we’ve met our targets, let’s go to 500,000 tonnes.

“Essentially, bringing cleaner energy into the country is a big deal for us, because we have data that more than 100,000 people actually die on an annual basis in Nigeria as a result of indoor inhalation of exhaust waste,” he said.