Nigeria LNG inks long-term contracts to secure gas supply

Nigeria LNG Ltd has inked 20-year gas supply contracts with NNPC Ltd and other oil firms for the supply of 1.29 billion standard cubic feet per day to support its liquefaction plants and expansion plans, according to a company statement. The agreements – which include extension options – also involve firms such as Shell Nigeria, Oando Group, Aradel Holdings, and First E&P, and are expected to mitigate long-standing upstream gas shortfalls while propelling Nigeria’s energy transition and industrialisation efforts.
The volumes will be gradually scaled up over time to supply the $10 billion Train-7 gas plant on Bonny Island in Rivers State, now 80% complete. Bayo Ojulari, NNPC Group CEO, said the contracts opened up opportunities for growth, collaboration, and shared prosperity. NLNG Managing Director Philip Mshelbila added that the deals addressed persistent gas supply issues caused by pipeline disruptions, including instances of vandalism and sabotage, and signalled NLNG’s strategy of diversifying its feedgas sources following the divestment of onshore assets by several international oil companies. NLNG is jointly owned by NNPC Ltd (49%), Shell Gas (25.6%), TotalEnergies (15%), and Eni (10.4%)